Softly-softly approach

Research shows the financial services sector is still not getting it right when advising older people. Guidance is in place but it's time for mainstream soft-skills training, says Tish Hanifan

The most recent edition of the Financial Services Ombudsman news features two articles of interest to those who advise in the later life sector. One is a group of decisions arising from complaints brought by older people, the other is a response to this from Age UK and Which? In providing these, the ombudsman gives valuable guidance on how financial services can get it right when dealing with older people.

These cases and Age UK's analysis highlight the problems that can arise in the advice process. Poor advice is not acceptable, whatever the age group of the complainant, but with older people its impact is particularly detrimental because they have less opportunity to put things right.

The first case study focuses on the inappropriate advice to buy a bond given to a couple, both aged 73. The capital guarantee required them to keep the bond for six years but the husband, who was in a wheelchair, died 15 months after it was taken out. The adviser had noted their health as "good". It was held by the ombudsman that their age and the husband's obvious disability combined with their lack of investment sophistication should have prompted the adviser to ask more questions.

Generally, a frequent feature that specialist solicitors find problematic is the lack of understanding about capacity issues within financial service. Despite guidance from the British Bankers' Association and others, many banks and financial institutions still make it hard for older clients to access their services. These clients may not be proficient at online or telephone banking and may not be physically able to visit their local branch, so they often rely on their attorney to access the system on their behalf.

Ground level

Anecdotal evidence from solicitors, such as members from Solicitors for the Elderly and the Society of Later Life Advisers (SOLLA), offers a national picture of financial institutions and banks in particular having poor 'ground level' training on dealing with substituted decision-making by an attorney or a deputy.

This lack of understanding causes delay, frustration and sometimes financial loss because older people are prevented from making the most of their finances in a timely fashion. Care fees funding, for example, requires that the older person can access their funds without delay, and until they can, they may experience an unnecessary level of anxiety and lack of security.

Financial services should recognise that with an ageing population, a good understanding of capacity issues is not an optional extra but a necessity. This would also help to eliminate the other area of concern highlighted by Age UK: older people feeling they are not treated with dignity when they seek to access financial products or services.

Older people do not lack capacity simply because they are a certain age or have a physical disability such as hearing loss. Capacity is case specific and advisers should ensure that they do everything to facilitate the older person making the decision themselves if they can. This extends to ensuring that documentation is understandable to its target market.

Clear lines

The financial services industry has been given clear guidance about the impact of age discrimination and the circumstances in which the sector can lawfully take into account age when delivering services. The treating customers fairly (TCF) principle highlights this in Conduct of Business Sourcebook (COBS) 4.5.2r 3: a firm must ensure information is sufficient for, and presented in a way that is likely to be understood by, the average member of the group to whom it is directed, or by whom it is likely to be received.

Getting it right for older clients would be greatly enhanced if advisers also took time to develop their soft skills. Learning to incorporate communication skills that reflect a consideration of limitations because of age is vital to ensuring an informed decision. Clients may not have the cognitive ability to absorb and assimilate matters quickly and thus need time to reflect. The adviser should check whether the information is understood.

This is highlighted in SOLLA's later life adviser accreditation and in its courses on dealing with conditions such as dementia and Parkinson's disease. The demographics of an ageing population mean that such age-related considerations should become a mainstream area of training for advisers.

Tish Hanifan is a barrister, founder and joint chair of the Society of Later Life Advisers, and head of business development for Solicitors for the Elderly

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