"Paraplanners often have a clearer view of a client’s overall situation and should feel empowered to push back when they believe the advice doesn’t fully account for a client’s vulnerabilities. Equally important is recognising when a case requires skills beyond our expertise and knowing when to refer clients for external support.”
The system also helps paraplanners and advisers meet their consumer duty requirements.
Whittaker said: “A clear vulnerability process directly supports our ability to meet the Financial Conduct Authority’s consumer duty requirements by ensuring we deliver fair outcomes for all clients, particularly those who may be more susceptible to harm.
"Our process allows us to identify and assess client vulnerabilities at every stage of the advice journey, ensuring that our advice is tailored and that clients fully understand the implications of financial decisions.
"By being vigilant and responsive to client needs, we mitigate the risk of poor outcomes, aligning with the FCA's requirement to act in good faith, avoid causing foreseeable harm, and support clients in achieving their financial objectives.”
The 45-year-old took on the responsibility for creating the vulnerability policy within her practice, while studying for a professional qualification in ‘Inclusive Financial Planning.’
She said: “One of my assignments focused on defining vulnerable clients and the importance of organisational culture in handling these clients. At that point, our company lacked a defined process for addressing vulnerability.
"I saw this as an opportunity to use my research and insights from the course to develop a tailored strategy for our practice. This allowed me to develop a practical, well-informed policy that aligned with our company values.
“The traffic light system is a tool I discovered during my research, which was already being used in other professions for varying purposes. Whilst I didn’t create it, I recognised the potential for assessing client vulnerability and adapted it for that purpose.”
Aamina Zafar is a freelance financial journalist
