As the FCA announced that up to 50 percent of the UK adult population is financially vulnerable, one transparent North East financial service has positioned itself as an expert solution having administered over £500m of saver’s cash to date.
Vulnerability can affect any one of us at some point in our lives, presenting itself in a range of situations reaching far further than just mental health and disability. There are three forms of vulnerability, which include temporary, sporadic and permanent vulnerability. Examples of these include bereavement as a temporary vulnerability, mental illness as a sporadic vulnerability while a learning disability can act as a permanent vulnerability. Each of these can impair decision making at any one point in time such that complex investment decisions may not be appropriate. Remaining in cash for a short-term period can act as a safe haven until circumstances improve.
Cascade Cash Management is a transparent savings solution that affords people in all three categories the time to think. The service helps to spread capital across different banking licences to keep deposits within compensation limits thereby reducing risk while also allocating to the best rates available within the parameters set. Such a solution affords those classified as vulnerable the time to think deeper about longer-term solutions.
According to the FCA, 25.6 million people have one or more characteristics of potential vulnerability. Such vulnerability can include periods after a sudden change in circumstances, such as after a divorce, a large windfall such as lottery wins or a large inheritance, the sale of a business or the promotion to a highly paid job, the appointment as an attorney, deputy or trustee, alongside more sporadic and permanent characteristics emanating from a critical illness, depression and many other forms of mental health.
Whilst permanent areas of vulnerability, such as mental health issues, tend to be considered, the impact of a sudden change in circumstances, particularly where a financial gain is achieved, can often be overlooked or underestimated, and according to recent findings, most going through these circumstances are being let down by their financial services providers.
Award winning Managing Director of Cascade Cash Management, Dr Emma Black, said:
“Being vulnerable through a range of external factors in your life can affect your ability to think clearly and make good decisions. Not all financial companies give the best advice in such circumstances as not all advisory firms have a complete offering for simply remaining in cash.
“Rather than jumping into a long term financial agreement or commitment, the Cascade service offers a bit of respite to think and find your feet. For example many people struggle with windfalls such as lottery wins, receiving poor advice that leads to bad decisions and at times, the loss of the entire gain. Divorces too are becoming increasingly common but nevertheless still represent a significant emotional event and change to people’s lives making those involved particularly vulnerable in the aftermath for the quality of decisions made, as indeed does the loss of a close relative or friend.
“We offer a solution here at Cascade that can help to support our clients through these times, allowing for the best returns to be generated from the lowest asset class risk available – cash. Our team has been helping many vulnerable clients and their advisors for over five years by constructing diversified cash portfolios with the aim of reducing deposits to remain within compensation limits while generating enhanced returns. We have a proven track record, and welcome any enquiries with no commitment necessary.”
Further information for anyone who feels vulnerable and needs support with their cash deposits or for IFA’s who have clients needing such services more information is available by calling 0191 481 3777 or by visiting www.cascade.co.uk.