"It’s something which must be addressed as part of wider financial advice and any firm’s approach to vulnerability and Consumer Duty, irrespective of their specialism."
The need for quality care advice has increased over time and, more than ever, there’s a requirement for financial advice firms to be able to support their vulnerable clients, in line with Consumer Duty regulations. With 1.4 million older people currently not having access to the care and support they need, it’s never been so important for financial advisers to be able to give their clients timely, relevant and trustworthy advice.
One of the biggest challenges for consumers is having to navigate the plethora of complex rules and processes of the UK’s care systems, when most have no prior experience of doing so. Navigating the system and accessing appropriate practical and financial support has often been impossible, leading to financial, emotional and psychological harm being experienced by many people in need of care or their family members.
Currently the UK’s care system is propped up by unpaid carers who, more often than not, are family members. The most recent Census (2021), together with ONS Census data, suggests that the number of unpaid carers across the UK is 5.7 million. The average person has a 50% chance of caring for an older adult by age 50, and they currently battle their way through a barrage of services, systems, agencies, tests and charging regimes that seem designed to deter demand until needs become extreme.
Considering these statistics, it’s clear that unpaid carers and those in need of care will together most likely make up the largest group of vulnerable clients within an adviser’s customer base, whether they’re aware of it or not.
The recently introduced Vulnerability and Consumer Duty regulations from the FCA are a huge focus for everyone in the financial services space. And it’s essential that advisers can provide their vulnerable clients who may be unpaid carers or in need of care themselves with easy access to the information they need, at the right time, in a clear and simple way that can be easily understood.
There’s a responsibility to demonstrate client understanding with adapted services and communications for those in vulnerable circumstances and with enhanced needs. Holistic and joined up care advice is therefore essential to adhere to the cross-cutting rules, avoiding foreseeable harm and enabling customers to pursue their financial objectives, whatever their circumstance.
From identifying suitable care options, to establishing eligibility for practical and financial support from the state, and understanding ways by which care can be funded, it’s imperative that clients of financial advice firms can access support so that they may better and more seamlessly navigate the many organisations and services available in the UK’s adult social care system.
One such innovation is our recently launched My Care Hub. This is a unique, digital care navigation service for financial advice firms to use by their clients, prospects and family members who themselves are either carers or in need of care. The online platform provides clients with an independent, ‘one-stop-shop’ for care advice, at the same time supporting advisers when it comes to approaching Vulnerability and Consumer Duty, both pre-and post-care needs arising through to end of life.
In the recent House of Lords’ Adult Social Care Committee report in conjunction with the Care Policy and Evaluation Centre at LSE, a key conclusion identified the need for a ‘one-stop-shop, or single point of contact, which should not only give information and signpost to other services, but offer help and support where possible’. The complexity of our care systems is a problem that’s reached the highest levels of recognition across the UK, and it’s vital that financial advisers become more engaged with, and use the tools at their disposal to provide their clients with access to help with navigating the UK’s adult social care systems to achieve better outcomes.
The need for care is something that will affect us all at some point in our lives, whether caring for another, or needing care ourselves. It’s something which must be addressed as part of wider financial advice and any firm’s approach to vulnerability and Consumer Duty, irrespective of their specialism.
Sharing their thoughts on why it’s so important for financial advisers to be engaged with learning more about the UK’s adult social care systems:
Sarah Morris-Simpson, care and proposition services director at Just Group, said: “Research for our annual Care Report consistently highlights that the vast majority of those accessing the care system find it difficult and stressful to navigate. Unpaid carers and those in need of care may represent a significant segment of vulnerable clients within an advice firm’s customer base, with the regulatory onus on the adviser to identify and understand the additional needs of these clients and their family members. We are delighted to partner with My Care Consultant to provide this truly valuable resource to advisers, ensuring their clients have easy access to accurate social care information and support in one place, presented in a way that cuts through the confusion and complexity.”
Keith Richards of the Financial Vulnerability Taskforce and Consumer Duty Alliance, commented: “The demand for care advice and support will soon catch up with the evident need and we all need to be alert to the key role that financial planning is expected to play against Consumer Duty requirements to avoid foreseeable harm. It’s great that My Care Consultant is on the case to provide expert support and resources for the sector.”
Robin Melley, founder of chartered financial planners Matrix Capital, added: “The ability to direct clients to an online 'one stop shop', providing self-service access to clear and accurate information, guidance and support for those who are caring for another adult, in need of care or are already in receipt of care, is in our view an invaluable service aligned to the regulator's stance on both vulnerability and consumer duty. At Matrix Capital we have no hesitation in recommending this service to other firms, whether they are specialists in this area or not.”
