The Intermediary – September 2025 - Flipbook - Page 74
L AT E R L I F E L E N D I N G
Opinion
systematic challenge
is emerging within
the financial advice
industry, as further
reports come to light
about cracks in the
advice process, leading to vulnerable
customers slipping through the net
and potentially resulting in serious
consequences.
This year, the Financial Conduct
Authority (FCA) reported that
only 40% of vulnerable customers
– who may be facing emotional,
financial, health-related or other
concerning challenges – disclose
their personal circumstances to their
financial adviser, and even fewer are
encouraged to share them.
As a result, these customers report
negative experiences within the
industry, as opposed to non-vulnerable
customers whose experiences of the
market are significantly higher.
A
Early identification
The growing gap in how firms identify
and support vulnerable customers
is a rising concern, as vulnerability
still gets treated as an exception, as
opposed to being a core component to
the customer process and experience.
Predominant factors contributing
to this blind spot appear to be around
systems for monitoring vulnerable
segments, cross-company data
sharing of vulnerability identifiers,
misalignment of company policies
against the FCA’s Consumer Duty and
vulnerability guidance, inadequate
consideration of vulnerability
in equity release products, and
insufficient training and tools for
advisers, among others.
Further disparity has come from
Schroders Adviser Pulse Survey
this year, which revealed that an
astonishing 95% of financial advisers
believe that less than 25% of their
customer base is vulnerable.
While our internal data aligns
much closer with the broader reality
of the Equity Release Council’s (ERC)
reported industry average, it’s evident
MARK GREGORY
is CEO and founder
of Equity Release Group
that a proactive and continuous
approach to identifying vulnerability
throughout the customer journey
is required.
Refining and improving
This is a primary focus for us at
Equity Release Group. Our latest data
identified 46% of our customers as
being vulnerable – a statistic we don’t
shy away from.
