Vulnerable Persons Policy

1. AIM OF THIS POLICY

The aim of this policy is to outline the practice and procedures for staff in Dartington Wealth Management Ltd, including our trading style Dartington Employee Benefits, (“Dartington”) to contribute to the prevention of detriment to clients who find themselves in vulnerable circumstances.

The policy covers all staff within the firm and in particular those operating in areas that deal directly with customers.

2. DEFINITION OF VULNERABLE

The FCA have published Finalised Guidance in February 2021 (FG 21/1) defining consumers in vulnerable circumstances and providing guidance for when dealing with vulnerable consumers. This has been the focus of a great deal of FCA attention in the past, but particularly since the Covid 19 outbreak.

The FCA consider a vulnerable consumer to be someone who, due to their personal circumstances is especially susceptible to detriment, particularly when a firm is not acting with appropriate levels of care.

Breaking this down further, the FCA has identified the following characteristics and circumstances that it views as ‘vulnerable’ as shown in the table below;

Further examples of vulnerability or potential vulnerability are:

Personal characteristics

• Restricted mobility
• Communications needs
• Resource limitations

Personal circumstances 

• Mental health problems e.g. depression / anxiety, bi-polar disorder
• Memory problems e.g. age (pivotal age for us is 75), dementia
• Niche requirements e.g. example, health conditions, legal status, distribution of assets etc.

Firms should understand that characteristics of vulnerability are likely to be complex and overlapping.

For example, a life event like a relationship breakdown or bereavement may lead to further vulnerability such as mental ill-health or low resilience. This may be made worse if the consumer has low or limited capability to engage with financial services or to manage their finances. 

Firms should ensure they are aware of their requirements under the Equality Act 2010. Groups of consumers with certain protected characteristics may have, or be more likely to have characteristics of vulnerability, for example older consumers. 

The nature of Dartington’s business makes it likely that on occasions new customers, or existing clients where there has been a change in circumstances, will be in vulnerable circumstances or that the nature of their circumstance may limit or remove the availability of facilities to the extent that the firm might be unable to accommodate their requirements.

As a firm, however, we must remain mindful of the potential for enquiry by these clients and the potential for any change of circumstance in respect of existing customers.

3. IDENTIFICATION OF CLIENTS IN VULNERABLE CIRCUMSTANCES

Vulnerability is broad and may occur at any time.  It will usually involve the interplay of characteristics of the individual, their circumstances, and static or transitory status.

Dartington may only deal with customers in vulnerable circumstances where we are aware of their needs.

1. Mental capacity deficiencies – The FCA provides clear guidance on the identification of mental capacity issues in their Handbook, specifically under CONC 2.10.8 Appended to this policy.
2. Stress or financial shock – may be identifiable (facial expression, posture or stance etc.), but otherwise may be revealed through conversation before and during interview
3. Physical impairment – may be identified visually, or through interview
4. Severe and long-term illness – may be identifiable through conversation or through interview
5. “Under banked” or “financially unsophisticated” – may be identified through interview and their credit profile
6. Low income – may be identified through interview and credit profile
7. In financial distress – may be identified through interview and credit profile
8. Carers – may be identified through interview or conversation
9. Digital exclusion – identifiable through interview or via routes of engagement with firm
10. Inexperience – age may be a factor in exposure to financial products
11. Poor language skills – may be audible or identifiable via routes of engagement with firm.

The nature of the need area to be addressed, for example, in connection with arranging mortgages and/or home finance, equity release, sale and rent back, right-to-buy, or where the main purpose of raising funds is to consolidate debt, or advising on and / or facilitating the provision long-term care may also indicate vulnerability.   Here additional safeguards will be applied as appropriate to ensure fair treatment.

4. ASSESSMENT AND MANAGEMENT OF RISK

Dartington will not discriminate against clients in vulnerable circumstances by way of adjustment to fees or any refusal to assist purely on the grounds of the client’s circumstance (unless that circumstance creates a situation which is likely to lead to detriment or a risk that removes the availability of any finance facility).

We will review our practices periodically for consistency and to determine adherence to the stated policy.

The following table illustrates mitigating actions for clients with mental capacity deficiencies (for the avoidance of confusion “competent person” means an individual without the limitation presented by the client):

5. RIGHTS & RESPONSIBILITIES

Responsibilities of Dartington:

1. To abide by the FCA’s Principles for Business 6 & 7; ICOBS 2.2.2R; and 6.1.5R; CONC 8.2.7; DEPP 6.5A.2 (calculation of enforcement fines); and Individual conduct rules (Treating Customers Fairly and Consumer Duty).
2. To ensure staff are aware of this policy and are adequately trained to identify and deal with clients who are or may appear “vulnerable”.
3. To support individuals in relation to identified risk and vulnerability.
4. To provide means of reporting any instance where they believe that a client might be in vulnerable circumstance.

Responsibilities of Dartington’s employees:

1. To be familiar with this policy and procedures, and be able to recognise where additional support or sign-posting to other agencies may be required
2. To take appropriate action in line with the policies of Dartington
3. To report any instance where they believe that a client might be in vulnerable circumstance, and act accordingly in line with the policy.