How to protect senior clients

Advisors play an important role in protecting senior investors, says the Investment Industry Association of Canada.

So, the group’s released a report (called Canada’s Investment Industry: Protecting Senior Investors) that discusses how regulators expect older clients to be served. It also outlines best practices currently being used by financial professionals.

While developing “this report, [we found] advisors and their firms go to [great lengths to] ensure their senior clients are not being taken advantage of,” says Michelle Alexander, vice president of IIAC.

Read: Tax credits for seniors

Older investors need to be protected, says the report, since:

• many don’t have the ability to replenish capital losses through future income;
• some are invested in higher risk investments or strategies;
• retirement income fears can negatively influence their investment decisions; and
• seniors are more susceptible to physical and cognitive impairments.

To ensure you’re providing the best advice, IIAC suggests reviewing industry best practices, as well as your firm’s internal policies regarding clients who require heightened supervision.

If older investors are served well, their “family members and friends [will see]…the [financial] industry [is]…proactive and diligent in its efforts to protect these clients,” says Alexander.

Read the full report.

For more tips, also check out:

Help an ailing business owner

Will assets pass away with your clients?

When capacity’s in question, what can you tell the kids?

Seniors are richer than you’d think, says study

Couples disagree on retirement planning