Advisers could be the “only chance” victims of financial abuse have of getting support, a specialist has claimed.
Michelle Hoskin, managing director of Standards International, has called on advisers to be aware of the signs of financial abuse and look out for behaviour changes that could signal someone is a victim.
It is thought around one in four women and one in seven men experience financial abuse
Speaking at CISI’s Financial Planning Conference on Tuesday (October 3), she said: “The perpetrator will constantly put them in a state of fight or flight, that is how they make their play.
“Emotional support is one of the biggest and best things you can do for people you fear are in this situation.”
She said the next thing to do would be to signpost the victim to services that could help them, including legal guidance.
Hoskin warned advisers against calling the police unless their client was in immediate danger as it could worsen the situation.
“You are talking about money all the time to your clients, if you can’t talk to clients about this, who the hell can?" said Hoskin. "You might be the only chance they have.”
One adviser at the conference raised the common situation of one person in a couple dealing with money and asked how to know whether this was a sign financial abuse.
Hoskin answered: “I think we have a duty of care to say, ‘I understand they deal with all the finances but I want to make sure that you are informed’.
“We can be doing it because we care but it is where that care flicks to control, if you feel that it is about control that is a different level.
“It is a very fine line. If you think there is something wrong you could say, ‘when you say they are not interested [in the finances] that makes me sad for them, do they want to be involved?’.”
Hoskin said changes to a person's behaviour, for example erratic behaviour or being withdrawn, could all be signs somebody is being financially abused.
She added: "You are perfectly placed to have that conversation. You don't have to provide all the answers and give all the solutions bit you can be there to support and signpost them to services."
Financial abuse is defined as controlling a person's finances, stealing money or coercing someone into debt.
It falls under economic abuse, which has the same signs plus controlling other resources such as housing, food, transport or employment.
Economic abuse was recognised in law in England and Wales for the first time in 2021 under the Domestic Abuse Act.
tara.o'connor@ft.com
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