The report identifies why it is important for investment dealers and advisors to remain vigilant when dealing with their senior clients. These factors include:
With few exceptions, seniors have limited ability to replenish capital losses through future income from other sources;
Extra caution needs to be exercised when dealing with seniors engaged in higher risk investments or strategies, or who deplete capital through withdrawals that exceed returns;
Unrealistic client expectations for investment income which is inconsistent with a low risk tolerance;
Senior clients’ fears and uncertainty about their future financial situation and life circumstances can be strong behavioural influences in their investment activities; and
Seniors are more susceptible to physical (e.g. hearing, vision) and cognitive (e.g. memory, context) impairments which need to be accommodated.
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