Three quarters of advisers claimed there was a need for greater education and additional resources in the market to provide practical guidance on how to recognise and handle vulnerable clients.

In its research, equity release lender more 2 life highlighted that the number of advisers calling for further education on vulnerable clients has dropped since last year, when 88 per cent of advisers called for it. The results suggested that the adviser community is utilising the increased level of support provided by lenders and other bodies.

Furthermore, customer vulnerability has been a key focus in the financial services industry recently, with the Financial Conduct Authority (FCA) launching a consultation on its proposed guidance for firms on the fair treatment of vulnerable customers.

Almost 100 per cent of those advisers that responded to more 2 life’s survey cited it was important to be aware and have an understanding of how to handle vulnerable equity release clients.

Despite this, 87 per cent admitted that it was difficult to identify vulnerable customers – potentially due to the fact that vulnerability is not a consistent state and can take a variety of forms.

When asked what proportion of their client bank was vulnerable, 81 per cent felt that less than a fifth fitted into this category which was a slight uplift from last year (74 per cent) and supports the idea that engagement is growing within this community.

Commenting on the findings, more 2 life chief executive officer Dave Harris said: “Vulnerability continues to be an important issue across the entire financial services sector and this research highlights that the equity release market is no exception. It’s clear that advisers need more support and education to help them identify and serve vulnerable customers to ensure that they provide the right financial outcomes for their situation.

“As an industry, we need to work together to give advisers the skills and confidence to recognise signs of vulnerability, and to communicate with clients and manage their requirements effectively. As the UK’s population ages and a greater number of older homeowners turn towards equity release as a source of income, advisers will be in a vital position to ensure they are able to help all consumers through the advice process and meet their needs in later life, including those who may be potentially vulnerable.”

According to the lender, more needs to be done to support advisers and more 2 life is calling on the wider lending market to raise awareness among advisers of the signs of vulnerability and to provide greater education and resources for advisers to better help these customers.

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