Financial elder abuse

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Financial elder abuse relates to situations where an older person experiences harm, distress or financial loss occurring within any relationship where there is an expectation of trust. It can also be the result of intentional or unintentional neglect.

There is no doubt that financial elder abuse is devastating and harmful to the victims, their family members and friends. It can take many forms. Often one form of financial elder abuse can be an indicator of additional mistreatment.

Financial planners are in a unique position to be able to identify financial vulnerability and should be prepared to offer vulnerable clients a good outcome.

Helping FAAA members combat financial elder abuse

The FAAA is supporting members on this issue. We have been working with the Financial Planning Standards Board (FPSB) to develop new guidance that aims to help financial planners who may work with, or who are likely to work with, vulnerable clients.

The FAAA also participated in a working group to develop the Financial Services Council’s (FSC) guide to the prevention of financial elder abuse.

• FPSB guidance – Advising Vulnerable Clients
• The FSC guide to the Prevention of Elder Financial Abuse

The FAAA also provides accredited CPD programs on the topic which are available via My CPD. These include:

• Quiz: Elder abuse: what can advisers do to prevent it?
• Article: Ethics and financial abuse-responsibilities and strategies for financial advisers
• Financial Senior Abuse & Inheritance Impatience, by Protecting Seniors Wealth Pty Ltd
• New Expectations, Professional Accountability – Assisting Clients, by Protecting Seniors Wealth Pty Ltd
• Their Whole Wealth™ Accredited Professional Training Program, by Protecting Seniors Wealth Pty Ltd

 

Policy – FAAA’s contribution to addressing financial elder abuse

The FAAA has been actively involved in advocacy and the identification of policy settings to address and prevent financial elder abuse, starting with our contributions to the Australian law Reform Commission’s 2016 inquiry, ‘Protecting the Rights of Older Australians from Abuse’.

As a member of an industry elder abuse working group, the FAAA supports initiatives proposed by the Australian Bankers Association (ABA) and Financial Services Council (FSC) to address elder abuse, including:

• the establishment of a national online register of enduring documents
• Consistent Power of Attorney laws across the country which protect people from this kind of abuse
• A register to report suspected elder abuse

 

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