Financial Vulnerability
Assessment

Financial Vulnerability Assessment

What is a Financial Vulnerability Assessment?

Financial Vulnerability can be caused by number of factors, not just mental capacity. One of our Assessors will meet with the client to determine whether they are potentially vulnerable, financially vulnerable or highly financially vulnerable. We are also able to identify the cause of the vulnerability, whether it is transient, sporadic or permanent and whether the factors affecting your client’s vulnerability are individual, environmental or institutional.

What do Financial Vulnerability Assessments include?

Our Financial Vulnerability Assessments include all the necessary preparatory work and organising the technical side of a remote assessment via video link, a Financial Vulnerability Assessment,  reading time and a written report.

What case law do you use?

There is no specific case law to use when assessing vulnerability. However, as part of the assessment, we will be attempting to determine if there is a financial vulnerability due to a lack of capacity so we will refer to the Mental Capacity Act (2005) and any associated guidance or case law.

What information do you need from me?

We will need to understand why you feel the individual may be financially vulnerable. The best way to do this is to provide us with a brief background of the case, highlighting any concerns you or others may have. We may also need an overview of the individual’s financial situation. Don’t worry, if we need any specific information that you haven’t provided, we will ask.

What happens in the Financial Vulnerability Assessment?

The assessment will take place via video link through the use of a smartphone, tablet, laptop or computer with webcam. This can take place at the client’s home or at a location they feel comfortable in and comprises of an in-depth conversation. It is not a test.

The assessment will take approximately one hour.

Why is a Financial Capacity Assessment necessary?

For many years, protecting vulnerable consumers has been a key priority for the FCA. They are continuously updating their guidance regarding financially vulnerable customers. It is the expectation that every industry, company and individual that is regulated by the FCA will identify when a customer is financially vulnerable and act accordingly.

To discuss arranging a Financial Vulnerability Assessment, please contact us.