A creative paraplanner has designed an innovative traffic light system to help identify vulnerable clients.
Senior paraplanner Rachel Whittaker has implemented a new assessment tool at Oakmere Wealth Management, which involves assigning a colour to each client depending on their vulnerability.
Green signals a potentially vulnerable client, who currently has no specific concerns identified.
Amber indicates a vulnerable client who is in a situation where they are more likely to experience harm, loss, or disadvantage. This is when relevant assistance and support is offered.
Red signals a particularly vulnerable client who is at a heightened risk of disadvantage compared to the majority of clients.
The firm holds a weekly team meeting to review clients marked as red or amber, ensuring they receive the appropriate attention.
During these meetings, staff also discuss any new cases of vulnerability identified through recent client interactions.
Whittaker said: “The system enables us to consider each client's unique situation, as people react differently to similar life events. For instance, a house move may be an exciting transition for a growing family but could be emotionally challenging for an older person downsizing from their long-term family home.
“Each client’s vulnerability rating is documented in our client database and included in their Confidential Financial Review document. This rating is reassessed at every interaction we have with the client.”
Additional support
The system works well because vulnerable clients are given additional support depending on their needs.
She said: “We offer additional support in various tailored ways, depending on the client's needs. For instance, we may arrange face-to-face meetings for clients at risk of digital exclusion or extend the duration of meetings for those with learning difficulties who need more time to process information.
"In some cases, we may suggest that an appropriate third party is present at any meetings, or it may be that specialised help is needed and we will signpost clients accordingly for further assistance.”
She said the traffic light system has helped advisers build better relationships with their clients.
She said: “Having a defined system like the traffic light system helps our advisers view the bigger picture and become more responsive to client needs. It allows them to pick up on non-verbal cues, often recognising when further assistance is required based on what a client doesn’t say rather than what they do.
"As a result, our team has become highly skilled at identifying signs and behaviours that deviate from the client's usual patterns, enabling us to tailor our support and deepen the client-adviser relationship.”
Whittaker believes other paraplanners and advisers would also benefit from replicating a similar system in their practice.
She said: “I strongly believe that paraplanners and advisers would benefit from having a system to identify client vulnerabilities. Many clients will not recognize themselves as vulnerable, so it’s crucial that we, as professionals, are trained to identify these situations.
