Advisers have a ‘responsibility’ to address suspected abuse

According to the Australian Bureau of Statistics, one in six women and one in 13 men report experiencing economic abuse at the hands of a cohabitating partner; however, it is important to note that the legal definition of economic abuse differs between each state and territory.

Furthermore, an estimated 3.8 million adults have experienced some form of violence – physical or sexual –- by an intimate partner or family member since the age of 15.

With cases of abuse so prevalent in Australia, it is important that financial advisers, given the deeply personal nature of their work, are able to identify and respond appropriately when they come across suspected cases of abuse.

Discussing advisers’ responsibility in addressing domestic and family violence in a TAL Risk Academy session last week, independent financial adviser Nathan Fradley explained that advisers are uniquely positioned to detect cases of familial abuse.

“As financial advisers, we often gain deeper insights into our clients’ lives than many other professionals, giving us a unique perspective on their circumstances,” Fradley said.

“With this comes a responsibility to recognise when family and domestic violence – including economic or financial abuse – may be impacting their financial wellbeing. Having the skills to respond appropriately when we suspect something is essential.”

Having garnered more than 400 registered attendees, TAL suggested that advisers clearly want more guidance in navigating these situations.

The one-hour continuing professional development session instructed advisers on how they can go about identifying tactics and patterns of abuse, and practical actions they can take to assist and support clients experiencing violence.

The session also covered the key elements of the Advisers Code of Ethics relevant to supporting clients who may be experiencing domestic or family violence, as well as considerations in the life insurance context.

Also presenting on the session, Uniting training and development consultant Jennifer Marshall added: “This was an important opportunity to assist advisers in recognising the signs of financial and domestic abuse and to respond in a safe and responsible manner to disrupt the abuse and enhance the safety of those affected.”

Chris Kirby, head of customer advocacy and ESG at TAL, said the life insurer was focused on ensuring all customers felt secure and supported, particularly those experiencing vulnerabilities, including customers impacted by family and or domestic violence.

Speaking to ifa earlier this year, Wealth Planning Partners’ Amanda Cassar said many advisers she had spoken with claim never to have come across a case of financial abuse, highlighting the importance of such courses.

Having recognised the knowledge gap, Cassar has played a key role in developing online training courses for advisers and taken to various platforms, such as social media and podcasts, to help them understand the potential signs of abuse.

“One of the main things is when you try and set appointments for a couple that one of them may not be included or invited or show up, or there’s a dominant partner who wants to run everything,” Cassar told ifa.

“If the partner is invited into the meeting and you ask them direct questions, maybe the more dominant partner sort of talks over the top of them or doesn’t allow them to respond or belittles their responses.

“Sometimes it’s as subtle as that.”