Not all banks are sufficiently vigilant with their elderly clients. This is the conclusion of the work carried out by the Financial Markets Authority (AMF) and the Prudential Control and Resolution Authority (ACPR) over the last two years and published this Tuesday. Therefore, the appeal launched by the financial police in 2021 to financial institutions was only partially heard.
Older people represent a vulnerable clientele whose specificities must be taken into account by financial institutions. In fact, they may not be fully capable of “forming informed consent.” Therefore, to avoid any risk of mis-selling, the underwriting of financial products for this clientele must be adapted and subject to specific protection measures.
“The advisor’s feeling about the client’s loss of autonomy may raise doubts about the client’s ability to form informed consent and the risk, among other things, of not providing adequate advice or fear of exposing themselves to reputational risk. , or even litigation,” the ACPR wrote in February 2023.
High average wealth
Not to mention that people over 60 have an average asset of more than 300,000 euros, while for those under 30 it reaches 43,000 euros, explains Grégoire Vuarlot, director of control of commercial practices at the Control and Control Authority. prudential resolution (ACPR) in the columns of the Parisian this Tuesday. A capital that “exposes them especially,” he adds.
“However, the authorities observe great disparities in the actions implemented,” it can also be read.
“Vulnerability” references and training
Professionals have a range of tools to protect their elderly clients. Half of the financial entities surveyed have set a “vulnerability” or “senior” benchmark. Their responsibilities, however, vary and can range from simply supporting advisors to an audit of “at risk” client files, including training employees on these topics. Half of the establishments have also planned the possibility of resorting to a “second look”. Two-thirds offer specific training for counselors and almost all apply the activation of surveillance measures from a “threshold age.”
Although the AMF and the ACPR welcome the progress observed in the training of advisors, they point out that they are not enough.
“Great principles” without actions
“While some establishments have really taken into account the challenges of aging in their business approach and operational processes, others currently demonstrate the fundamental principles without translating them into actions,” considers the financial police.
On its website, the AMF recalls the means available to individuals to protect a vulnerable loved one.
“Power of attorney is a good way to anticipate difficulties or to protect one of your loved ones in a vulnerable situation,” the AMF specifies on its site.
Source: BFM TV
