4) Cross the Is and dot the Ts. Any decisions made about a client’s mental capacity should always be recorded and this should be done no matter whether the adviser believes there is reduced capacity or not. Likewise, a reliable log should be kept up to date should the FCA come knocking. Firms must be in a position to clearly demonstrate their ‘working out’ should one of their decisions be called into question and this should be consistent across all cases. Having a tech-based, objective system in place for making consistent assessments across all clients is the best possible way for a firm to protect itself, should a challenge be made.
5) Invest in tools to avoid human error. Humans, through no fault of our own, can be prone to bias. As a result, conducting these assessments can prove difficult. By using innovative technology, advisers can ensure their assessments are more consistent and reliable and present the results in an objective and holistic way. Technology is a financial advisers most valuable asset when it comes to removing subjectivity and human error from the assessment process, thereby creating a de facto industry standard when assessing mental capacity. Advisers need to be able to base their assessments on facts and real-time insights in order to make accurate determinations and fend off any potential challenges. These technologies aren’t there to replace human involvement or oversight, but rather to supplement it, to improve outcomes and make roles more manageable and less vulnerable to error.
The nature of the capacity assessment landscape needn’t be something financial advisers should fear. Rather it is there to enable them to carry out their work effectively and prioritise their clients’ interests and wellbeing. However, staying ahead of the curve when it comes to justifying decisions will be made much easier if experts use the right processes, and employ the right technology.
Tim Farmer is Co-founder and Clinical Director at Comentis, a clinical reg tech provider. Tim is also a multi-award-winning author and expert witness specialising in the assessment of mental capacity and financial vulnerability. He has over 25 years of experience of working with adults and young adults who are experiencing a decline in mental health, cognition and capacity and am considered one of the UK’s leading experts in the assessment of both mental capacity and of financial vulnerability.
Comentis aims to protect and support the vulnerable who would otherwise go unidentified or undetected. It’s cost effective and inclusive technology has allowed clients such as Tenet Compliance Services and St. James’s Place to proactively identify at-risk customers and then refine their outreach accordingly.
