Financial Vulnerability & Decision-Making Review
Financial decision-making can become concerning before there is clear evidence of global financial incapacity.
A person may be functioning independently in many areas while experiencing difficulty evaluating a particular transaction, recognizing financial risk or resisting pressure from another person. A focused review can help clarify the nature of the concern.
When a Review May Be Helpful
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Romance scams
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Investment or cryptocurrency scams
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Repeated financial fraud
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Unusually large gifts
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Sudden transfers of money or property
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Significant loans or borrowing
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Reverse mortgages
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Changes in longstanding financial behaviour
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Unexplained withdrawals
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New relationships involving financial requests
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Increasing dependence on another person
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Possible undue influence
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Concerns about a specific transaction raised by family, counsel or financial professionals
What Is Reviewed?
Understanding
Does the person understand the financial decision being made?
Appreciation
Can the person appreciate how the decision affects their own financial circumstances?
Reasoning
Can they explain why they are making the decision and consider alternatives?
Financial Situational Awareness
Do they have a reasonable understanding of income, assets, obligations and financial position relevant to the decision?
Vulnerability
Are cognitive, emotional, interpersonal or situational factors affecting the decision?
Influence
Is the person’s decision substantially dependent on, pressured by or directed by another individual?
Values and Consistency
Is the decision understandable in the context of the person’s longstanding values, goals and financial behaviour?
Capacity, Vulnerability and Exploitation Are Different Questions
Financial Capacity
Can the individual understand and appreciate the information necessary for the financial decision?
Financial Vulnerability
Are there factors increasing the person’s risk of decisions that do not adequately protect their interests?
Financial Exploitation
Has another person improperly taken, used or influenced the person’s financial resources? A clinical review can identify concerns about decision-making and vulnerability, but it does not replace a legal, regulatory, police or financial investigation.