Looking out for vulnerable clients

It can show up in small, easy-to-miss ways-a partner answering all the questions, a son managing Mum's finances but refusing her a debit card, or a long-term client suddenly unsure about decisions they once made confidently.

As a financial adviser or AFS licensee, you are not just offering strategies and products. You are building relationships. You are in a position of trust. And that means you are also in a position to notice when something does not feel right.

You might be the only professional in that person's life who sees the signs.

Noticing matters. Knowing how to respond matters even more.

Elder financial abuse and domestic financial abuse are not fringe issues-they are mainstream, growing, and increasingly recognised as part of your duty of care. Beyond your legal and compliance obligations, this is about being the kind of adviser people can rely on when it really counts.

This article (in two parts) is here to help you recognise the signs, ask the right questions, and respond in a way that is informed, appropriate, and supported by best practice.

Because protecting someone's financial wellbeing often means protecting more than just their money.

At the risk of raising the ire of both the Australian Financial Complaints Authority (AFCA) and the Financial Advice Association Australia (FAAA), and being accused of over-reach, what follows is a comprehensive roadmap for advisers and licensees to identify, respond to, and mitigate elder and domestic financial abuse.

We will focus on Australian laws, regulations, and expectations-including obligations under the Corporations Act 2001 (Corporations Act), Australian Securities & Investments Commission (ASIC) regulatory guidance (for example, RG 271 on complaints, RG 263 on the Financial Services and Credit Panel), the Financial Planners and Advisers Code of Ethics 2019, and relevant decisions and commentary from AFCA.

We will also reference other industry codes-such as the Australian Banking Association (ABA) Banking Code of Practice-and expectations of duty of care from banks and aged care providers.

Practical tools, templates, and checklists are provided to help you take action. Throughout, we contrast Australian approaches with international best practices (like the UK and US) to highlight opportunities for improvement.