Almost two-fifths (39%) of later life advisers feel that more “in-depth” vulnerability training is needed to meet the requirements of today’s clients, more2life has found.

In its bi-annual vulnerability report, nearly all advisers surveyed (97%) stated that it was “very important” to be conscious and develop an understanding of client vulnerabilities.

However, more2life found that just one in eight advisers felt that it was “easy to spot” a vulnerable client, highlighting how seriously they viewed the issue and the need for access to new or expanded resources.

Almost a third of clients identified as vulnerable have been done so as a result of the cost of living crisis. However, the common root cause for the majority of clients were either long-term challenges or unrelated to the current economic turmoil – namely large interest-only mortgages (43%) or the various impacts of living to an advanced age (42%).

Ahead of the Consumer Duty deadline, advisers predicted that that the new regulations would affect the way in which vulnerable customers are managed. Impacts included enhanced scrutiny around good outcomes (28%), clearer documentation of the process (26%), and expectation around more regular post-sales contact from both the adviser and the lender (13%).

Furthermore, over half of advisers felt that education and training on supporting vulnerable clients significantly improved in the past year, which is more than double the 22% of advisers who reported the same conclusion in 2021. It was also found just this one in five (21%) felt that current levels of training were sufficient, indicating a need for more education.

Managing director at more2life, Ben Waugh, said: “While lenders, platforms and networks are being proactive in providing training and information, it is vital that our industry keeps pace with this evolving issue. Close collaboration is paramount to ensure that the most vulnerable customers receive swift and effective support in a challenging economic environment, and knowledge is key.

“Access to a wider range of training will empower advisers in the new regulatory environment. Educational resources such as learning modules on client vulnerability will equip advisers to both identify vulnerability and provide bespoke support on a case-by-case basis. Not to mention, the most prepared advisers will be able to seamlessly adjust to the new Consumer Duty regulations and provide thorough evidence of compliance when it comes to vulnerability.”

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