The tone is cordial, but the message clear: sellers of financial products have their work cut out for them in accommodating the vulnerabilities of some of their elderly clients.
Bankers, insurers, financial intermediaries: “Establishments must put in œworks with enhanced vigilance ” towards those whom time has weakened, say the Financial Markets Authority (AMF) and the Prudential Control and Resolution Authority (ACPR) in a communication on “The marketing of financial products to vulnerable elderly people” that they will publish this Thursday April 8. Goal : “Limit as much as possible the risks of unsuitable marketing”, by removing “Any risk of discrimination” age-related.
How to carry out this balancing act? The two authorities recommend that they “Rely on three axes”.
Training and awareness-raising actions for advisers on the potential vulnerabilities of seniors, first of all, to enable them to better understand the general characteristics of this clientele, and therefore to better take into account their specificity.
Then, the creation, internally, of a “vulnerability referent”, in particular to ensure the implementation of the approach in commercial practices.
Finally, a strengthening of internal procedures and controls of these practices. With a watchword: respect the autonomy of the client.
Age, one criterion among others
These avenues emanate from discussions held since 2018 with establishments to learn about their practices and difficulties, but also with experts in aging and neurodegenerative diseases, consumer associations and other actors confronted with the subject, such as notaries. This work gave birth to a rich report published concomitantly with the communication from the AMF and the ACPR.
“The objective is not to deal with the financial scams of which the elderly are victims, that is another subject, and we are also leading strong initiatives in this area, it is a question here of preventing unauthorized commercial practices. adapted “, underlines Nathalie Beaudemoulin-Mouratille, director of the control of commercial practices at the ACPR. “It is an upstream, non-prescriptive approach so that the players understand the subject. We cannot remain inactive in the face of the challenges of an aging population. “ All the more so since this demographic change is taking place, according to the report, in a context of increasing digitization of practices, and a large proportion of seniors still suffer from illectronism (digital inability).
The issues identified are legion. There is, of course, the objective of matching the financial product offered to the client’s situation. “At an advanced age, the non-liquidity of assets, in particular, can pose a problem, I am thinking of this 84-year-old lady who had shares in SCPI. As these products could not be resold quickly, she could not pay for the life assistant she needed ”, illustrates Claire Castanet, director of relations with savers and their protection at the AMF.
Not easy. It would be discriminatory to ban certain products from a given age, for example those that are risky or illiquid. And not very timely: age is only one criterion among others to judge the suitability of a product for a situation. Others are taken into account, such as the financial situation and the investment objectives (precautionary savings, additional income, financing of an accommodation establishment, transfer, etc.). At the same age, various situations …
A still more delicate exercise is superimposed on this for the advisor who must ensure the “Informed consent” of the person: detecting a vulnerability. Because “Aging can be accompanied by the decline of certain cognitive functions (concentration, attention, reasoning skills, immediate memory), which may have an impact on the ability of some to express fully informed consent” for a financial decision, summarizes the report.
Not to turn the counselor into a doctor
The rules are clear for people under tutorship or curatorship, less for those “just” vulnerable. The “gray area”. When the faculties are impaired, but there is no legal incapacity and the advisor must respect decision-making autonomy.
Not everyone is vulnerable at the same age. And the vulnerability is not defined. Nevertheless: if the age is not “A sufficient indicator of a person’s capacities, discussions with notaries show the possibility of defining a set of vulnerability indices”, say the authors of the report.
“The idea, however, is not to transform the counselor into a doctor”, relieves Mme Beaudemoulin-Mouratille. Nor to charge him with judging the legal capacity of his client. The question arises when the client buys a financial product, but also when he separates from it – whether he resells shares or makes a large withdrawal on his life insurance, for example.
Faced with the complexity of the subject, the report could serve as a toolbox for financial institutions, insofar as it lists the experiments carried out in certain institutions (without naming them) or in other countries, and ideas resulting from the groups of job.
Among these avenues, jumble: systematic procedures for subscription or arbitration requests after a certain age, systematization of interviews at certain deadlines, strengthening of controls on transactions carried out under proxy, monitoring of the marketing rate from complex products to elderly customers, etc.
If, faced with a client who intends to subscribe to a product or to divest his savings, the advisor has any doubts, one option may be to organize a second meeting, the report further indicates, to give the senior the time to understand the information. issued, and give themselves the opportunity to ask for a second look at the situation (from a supervisor, the institution’s referent).
In the UK, a partnership between the Alzheimer’s Society and banks enabled counselors to be trained “To the detection and management of cases of dementia, diagnosed or not” – how to talk to a person with language or memory problems, etc., also quotes the report.
See you in 2022
And now ? The AMF and the ACPR ask professionals to present “Their progress on the subject” in 2022. “Until then, we will let the profession work, so that it has time to examine our tracks and to progress. Everyone must be able to move forward according to their clientele, their organization ”, details Mme Castanet.
“We know that within financial institutions these subjects come up a lot, we would now like them to structure their actions, adds Mme Beaudemoulin-Mouratille. And that professional federations [Fédération française de l’assurance, Fédération bancaire française, etc.] in turn bring reflection. It seems possible to us, the professionals, daily confronted with these situations, are very involved in our working groups. “
What if the banking center does not act, or not enough? “This solemn interpellation is a first step”, precise Mme Castanet. A good hearer.
Details that are not
Asked as part of the report on marketing practices and aging populations, Catherine Mouaci, of the Médéric-Alzheimer Foundation, gives recommendations for the smooth running of a meeting between a counselor and a person with sensory disorders. and cognitive.
It particularly emphasizes the importance of “Summarize important information, decisions taken, their consequences, and [de] ask the person to rephrase what they understood ”. But also of“Be aware that some may find it difficult to do two things at the same time”, like writing and listening to explanations, while “Others may have difficulty with abstraction; written explanations can then be more easily understood than certain graphics ”.
“On the form, in a branch or at home, offer a usual environment, easily accessible, calm, well-lit and likely to respect one’s habits, knowing that the level of vigilance is often higher from 8:30 a.m. to 10 a.m. and from 3 p.m. h 30 to 5 p.m. The duration should be adapted to his ability to concentrate and should not exceed thirty minutes. “