Investment: what banks need to do to better protect the elderly

The ACPR and the AMF, the two authorities that oversee the financial sector in France, jointly called on banks and insurance companies on Tuesday to better protect the elderly and vulnerable.

Big thanks to the bank employee who found my alzheimer grandmother completely helpless in her agency (and we already informed the agency, we know the situation), made her sign a lot of contracts, JB gets carried away by X, a new name from the social network Twitter. His case is not unique!

In a report published this Tuesday, the Office for Prudential Regulation and Resolution (ACPR), banking supervision and the Financial Markets Authority (AMF) call for greater vigilance with banks towards vulnerable seniors.

Faced with business pressure from unscrupulous bank advisers who are forced to sell or under the unwise advice of loved ones, elderly and/or frail people can make poor decisions with their money. sign binding documents that harm their personal finances.

Average wealth – more than €300,000 for those over 60 compared to €43,000 for those under 30 — especially exposes vulnerable people, points out Grégoire Vuarlot, ACPR’s director of business practice control in columns Parisian.

In this communication, based on work carried out over 5 years, regulators note that most facilities have taken this issue into account and trained their staff. However, large differences remain today, and some facilities currently display guiding principles without putting them into practice.

Identify a cluster of vulnerability indicators

Two-thirds of businesses have implemented very specific measures, notes Grégoire Vuarlot, to learn to identify a number of indicators of vulnerability in their customers (change in behavior, atypical financial transactions, long-term account inactivity) and don’t force them to buy products which do not need or have not understood all the issues.

We have noticed that some facilities prohibit their clients from a certain age from any acquisition or any promotion or even any subscription to risky or illiquid products, notes Claire Castanet, director of saver relations and protection at AMF to the Daily.

In general, maximum measures are taken from the age of 85. Of the fifteen banking institutions and insurance companies that met, the majority took this question into account, the editors congratulate themselves. To avoid the most problematic situations, the ACPR and the AMF advise banks to appoint points of contact for vulnerability (on the disability model) or continue double verification of contracts after a certain age.

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