Vulnerable Consumer Policy

AIM OF THIS POLICY

The aim of this policy is to outline the practice and procedures for staff in Dawkes Music & Windcraft Ltd to contribute to the prevention of detriment to clients who find themselves in vulnerable circumstances.

The policy covers all staff and areas of work directly with the customer.

DEFINITION OF VULNERABLE

The Financial Conduct Authority in its publication “Consumer Credit and Consumers in Vulnerable Circumstances” of April 2014 (pub ref 00489) defines consumers in vulnerable circumstances as follows:

"We consider a vulnerable consumer to be someone who, due to their personal circumstances, is especially susceptible to detriment." With the most significant detriment occurring when, …through the use of consumer credit, they get into unmanageable or problem debt.

Dawkes Music & Windcraft Ltd is a credit broker, not a lender and is authorised and regulated by the Financial Conduct Authority (FRN 700186).

Clients who might be considered as being in vulnerable circumstances could include:

Clients with mental capacity deficiencies (including language or communication)
Clients who are "underbanked" or "financially unsophisticated"
Clients with low income
Clients already in a distressed financial situation

IDENTIFICATION OF CLIENTS IN VULNERABLE CIRCUMSTANCES

Mental capacity deficiencies – The FCA provides clear guidance on the identification of mental capacity issues in its Handbook under CONC 2.10.8 Appended to this policy
Low income – can be identified through interview and credit profile
Underbanked, Financially Unsophisticated –can be identified through interview and credit profile
Financial Distress, can be identified through interview and credit profile
The nature of the need area to be addressed, for example, in connection with arranging mortgages and/or home finance, equity release, sale and rent back, right-to-buy, or where the main purpose of raising funds is to consolidate debt or advising on and / or facilitating the provision long-term care

ASSESSMENT AND MANAGEMENT OF RISK

Dawkes Music & Windcraft Ltd will not discriminate against clients in vulnerable circumstances by way of adjustment to fees or any refusal to assist purely on the grounds of the client’s circumstance (unless that circumstance creates a situation which is likely to lead to detriment or a risk that removes the availability of any finance facility).

The following information illustrates mitigating actions for clients with mental capacity deficiencies (for the avoidance of confusion "competent person" means an individual without the limitation presented by the client.

Capacity Issue	Risk	Mitigation
Language	Client cannot fully understand specific features of their agreement with Dawkes Music & Windcraft Ltd or cannot understand consequences or recommendations.	Client to instruct a capable interpreter
Other communication problem caused by disability	Same as above	Client to instruct a capable interpreter Client to instruct a competent person to communicate on behalf of them. Legal agreement must be reached outside of any period of incapacity Client to nominate a reasonable communication medium suitable for their disability
Temporary mental incapacity (e.g. mental illness, intoxication)	Same as above, plus the potential for careless lack of regard for consequence	Client should be encouraged to seek independent professional advice If legal agreement cannot be reached outside of any incapacity, client must provide “Power of Attorney” for a capable individual to act on their behalf
Permanent mental incapacity	Same as above, with the possibility that any agreement could be unenforceable because of know incapacity	Client must provide "Power of Attorney" for a capable individual to act on their behalf

RIGHTS & RESPONSIBILITIES

Responsibilities of Dawkes Music Ltd

To ensure staff are aware of this policy and are adequately trained once per quarter
To support individuals in relation to identified risk and vulnerability
To provide means of reporting any instance where they believe that a client might be in vulnerable circumstance

Responsibilities of Dawkes Music Ltd employees

To be familiar with this policy and procedures
To take appropriate action in line with the policies of Dawkes Music Ltd
To report any instance where they believe that a client might be in a vulnerable circumstance