According to the Australian Bureau of Statistics, 16 per cent of women and 7.8 per cent of men will experience financial abuse in their lifetimes, with increased awareness around the issue identifying it as an often unseen and overlooked form of domestic abuse.
Dealing primarily in the financial realm, advisers are better equipped than most professionals to help identify this form of abuse, according to Amanda Casser, CEO and director of Wealth Planning Partners.
“Financial advisers have deep and trusted relationships with clients that go far beyond the numbers,” Cassar told ifa.
“We’re privy to family dynamics, behaviour, and changes in circumstances that others might never see. This gives us a unique opportunity, and possibly a responsibility to recognise when something isn’t quite right.”
However, just where that responsibility extends is a controversial topic among advisers, with many arguing it complicates the adviser-client relationship and places an unnecessary burden on their shoulders.
In light of this, Cassar argues that monitoring and reporting financial abuse sits “squarely” within adviser responsibilities.
“The FASEA Code of Ethics, particularly Standards 2 and 5, requires us to act in our clients’ best interests and to ensure the advice we give supports informed, free, and independent decision-making,” she asserted.
“If a client’s autonomy is being undermined through coercion or control, it’s extremely difficult to meet those standards.”
Cassar did, however, highlight that advisers should not be expected to solve cases of abuse.
“Advisers aren’t expected to investigate or resolve abuse, we can still play a vital role by observing, recording, and referring concerns appropriately,” she said.
“Identifying when something isn’t right is part of safeguarding our clients’ wellbeing and that’s at the very heart of what ‘acting in their best interests’ truly means.”
As it stands, advisers are not classified as mandated reporters of financial abuse clients, such as in health and aged care, despite the unique insights they have.
In response to calls for growing awareness, the Financial Adviser’s Association Australia (FAAA) has adopted the ATO’s guidelines on identifying and reporting financial abuse.
“Financial abuse is often hidden and challenging to identify, making it a difficult issue to address,” Phil Anderson, general manager of policy, advocacy and standards at the FAAA said earlier this year.
“Many victims may not even realise they are being abused, especially if the abuse is subtle or if it occurs within familial relationships where trust is implicitly granted.”
Welcoming this change, Cassar emphasised that more still needs to be done.
“I’d love to see mandatory training on identifying and responding to financial abuse across the advice profession, supported by clear reporting frameworks and collaboration with regulators, community organisations, and law enforcement, where necessary,” she said.
“Ultimately, tackling financial abuse requires a collective effort, where every professional who touches money recognises their role in protecting vulnerable people from harm.”
If you or someone you know is experiencing domestic or family violence, help is available.
Call 1800RESPECT (1800 737 732) — the National Sexual Assault, Domestic and Family Violence Counselling Service — for confidential support, 24 hours a day.
For financial abuse and money-related support, contact Centrelink’s Social Work Services on 132 850, or visit Good Shepherd’s Financial Independence Hub (1800 946 373) for free, specialised assistance.
Yes but who do we report it to? Massive issues here around privacy etc that need to be addressed to support us and our vulnerable clients.
“I’d love to see mandatory training on identifying and responding to financial abuse across the advice profession”.
Personally, I’d love to see a reduction in the amount of mandatory form filling and record keeping by financial advisers, that just ends up making professional advice too complex and expensive for most consumers.
What’s wrong with allowing professionals to use professional judgement? Sure, not every financial adviser is a professional, and they should be weeded out and removed, just as Merhi should have been removed long before he wreaked havoc. But burdening the honest majority of professionals with more and more and more red tape is not the solution to anything.
If Cassar ever runs for any sort of adviser representative body, remember she is a fan of even greater regulatory strangulation.
“Regulatory strangulation”? Now there’s a headline I hope never to see next to my name!
I’m absolutely not advocating for more red tape! Heaven knows advisers already juggle enough forms to wallpaper an office. My focus is on protection, not paperwork.
Recognising and responding to financial abuse isn’t about burdening advisers, it’s about empowering them. We’re in a unique position to notice when something’s not quite right, and a little awareness can make a big difference for a vulnerable client.
Think of it less as “regulation” and more as collaboration across financial advice, legal, health, and community services. All working together to safeguard clients’ independence and dignity. That’s the kind of connection I’ll happily champion any day. And as for running for a representative body… I think I’ll leave politics to the brave! For now anyway!