According to a press release issued by the Financial Conduct Authority (FCA) in March 2025, only 40% of clients disclose their vulnerabilities to their Financial Adviser, despite it being beneficial for them to do so. Of those who did, three quarters (74%) felt they were asked the right questions to understand their situation, while six in ten (57%) said the firm they engaged with ‘cared’. Finally, 58% said their firm took action to provide the support they needed.
What is vulnerability?
Vulnerability can apply to many factors, with the FCA setting out its definition of vulnerability as “someone who, due to their personal circumstances is especially susceptible to harm, particularly when a firm is not acting with appropriate levels of care”. Key vulnerability drivers in financial services are health, life events, capability and resilience. This could include, but is not limited to, poor health, major life events, financial or emotional shocks and poor financial or digital knowledge. The latter is an ‘invisible’ issue that can affect many people and can have serious consequences both for their wealth and their lives.
Mental health, loneliness, and vulnerability
According to mental health charity Mind, it’s estimated that one in four people will experience a mental health problem of some kind in England each year. It’s no surprise then that the number of people facing mental health issues has been rising – people accessing community mental health services rose to 647,380 in December 2024.
When it comes to finances, there is a cost for mental health. On a personal finance level, those with mental health problems earn, on average, £10k less per annum than those who don’t. Mental health has an economic impact too; it’s calculated to cost England £300 billion a year. Meanwhile, life expectancy of those with serious mental health illnesses is reduced by 15-20 years.
Combatting vulnerability
While a quarter (25%) of those in vulnerable circumstances said they felt “uncomfortable” explaining their situation to a financial services provider, many didn’t fully understand the guidance they could receive to ensure vulnerability won’t hold them back from any support, information and knowledge they might need to handle their finances, now and into the future.
Key reasons for not disclosing personal situations included:
- Embarrassed 37%
- Don’t want to be treated differently 24%
- Worried may get a worse deal 23%
- Didn’t know my firm would help 19%
- I have security concerns 16%
- My circumstances have no impact on my financial affairs 16%
- It’s not relevant 11%
In its critical research, the FCA found that “Nearly 6 in 10 (58%) either do not know if there is anything in place or feel that they know nothing is in place to help overcome communication issues they may face.”
Courtiers wants you to gain every opportunity to manage your own and your loved ones’ wealth with suitable support, no matter the requirements. And we only need telling once.
Our approach to vulnerability involves providing bespoke aid, dedicated encouragement and accessibility to ensure all investments remain obtainable. We take steps to make sure our advice is clear, with correspondence available in a preferred way, for example by changing any letters to large print. Your adviser is prepared to answer any of your investment or financial questions, however niche you think they might be.
“However, the majority (70%) of those who have faced issues feel that providers give adequate alternative methods.”
If you are thinking ahead and decide it might be time to put supportive plans in place now for the future, tell us as soon as you can and we can implement any requirements before they are fully needed and make sure they’re right for you.
The Courtiers Adviser view:
“From my perspective, treating clients fairly and recognising vulnerability are closely connected and critically important. While we are duty-bound by regulation, for me, perhaps more so is that it’s also a moral imperative. I’ve always tried to approach our work through the lens of: ‘How would I want my parents to be treated in this situation?’
These two principles, fair treatment and awareness of vulnerability are inextricably linked. It’s essential that Courtiers clients who may be affected by (or at risk of) vulnerable circumstances receive outcomes on the same level as non-vulnerable clients.
To achieve this, I take a proactive approach, adapting my service and communication to meet individual needs. This is the shared ethos among Courtiers Advisers. Sometimes, it’s as simple as ensuring a client has a trusted family member or friend present during meetings, especially when they may be at greater risk of harm. This helps ensure they fully understand and feel confident about what’s being discussed both during and after meetings too.” – Ugiagbe Ugiagbe, Private Client Manager
Let us help you
We offer emotional and holistic support to advocate for your financial decisions. To learn more about how we can aid you and your wealth, please get in touch with your Courtiers Financial Adviser, or use the Contact us page.
