In a report published on April 8, the Autorité de contrôle prudentiel et de résolution (ACPR) and the Autorité des marchés financiers (AMF) suggest several avenues for reflection and action to encourage banks and insurers to take greater care of elderly and vulnerable customers. Indeed, according to the French Banking Federation (FBF), complaints about banking transactions carried out in the name of the very elderly are on the rise. How can we protect these customers from the marketing of financial products?
No strict definition of the vulnerable elderly person
In this public report, the authorities highlight several points that caught their attention. Firstly, they point out that there is no strict definition of a vulnerable elderly person, which can pose difficulties. Age alone is not enough to presume a particular vulnerability.
This state of vulnerability canonly be assessed on the basis of a series of clues, linked to criteria relating to the person's financial transactions.
Raising awareness among financial advisors
The ACPR and AMF are also looking at the relationship between the elderly and financial advisors or intermediaries. The authorities note in particular that telephone canvassing is unsuitable for this population and suggest that every transaction carried out over the phone with a vulnerable elderly person should be followed by a second call to ensure that the terms of the contract have been understood. "Claire Castanet, Director of Investor Relations and Protection at the AMF, points out: "It can be useful for a financial advisor to have someone on his team to turn to when he has doubts about a client's informed consent.
Improve the readability of the documents provided
The report notes that financial institutions still have some way to go when it comes to the legibility of the documents provided when a product is sold. The consumer protection measures introduced by regulators must not result in excessive documentation inflation.
Ensure informed customer consent
The main objective of supervisors is to obtain the informed consent of the weaker party in terms of information. Informed consent should make it possible to "avoid the marketing of financial products that would not suit the needs and interests of the latter". It is up to the financial advisor to compensate for this imbalance between the two parties to the contract.
This recommendation is aimed at reducing the number of legal actions taken, as the ACPR and AMF noted numerous breaches in canvassing during 2018 and an increase in the number of referrals to the mediation service intervening with the FBF.
One year to make progress
From 2022 onwards, industry professionals are invited to present their progress on the issue of taking into account the situation of vulnerable elderly people in the context of customer relations. In particular, they will have to create or develop awareness-raising and training initiatives for advisors on the vulnerabilities of seniors.