<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>Old age can be associated with declining cognitive abilities and the development of Alzheimer’s disease and dementia. These conditions generally result in a reduced ability to make sound financial decisions, that is, a reduced financial capacity. This reduction is an important issue for financial planners, but reduced financial capacity is often difficult to detect. Moreover, severe legal consequences can result for financial planners who provide what is later deemed to be inappropriate financial advice to clients with these conditions. Consequently, this article aims to help financial planners understand this condition and the actions to take when it is detected.</p>
</abstract>

Old age can be associated with declining cognitive abilities and the development of Alzheimer’s disease and dementia. These conditions generally result in a reduced ability to make sound financial decisions, that is, a reduced financial capacity. This reduction is an important issue for financial planners, but reduced financial capacity is often difficult to detect. Moreover, severe legal consequences can result for financial planners who provide what is later deemed to be inappropriate financial advice to clients with these conditions. Consequently, this article aims to help financial planners understand this condition and the actions to take when it is detected.

Challenges Facing Financial Planners Advising Ageing Clients with Diminished Financial Capacity

Financial Planning Research Journal

This work is licensed under the Creative Commons Attribution 4.0 International License.

Old age can be associated with declining cognitive abilities and the development of Alzheimer’s disease and dementia. These conditions generally result in a...

Challenges Facing Financial Planners Advising Ageing Clients with Diminished Financial Capacity

Published Online: Mar 17, 2024

Page range: 7 - 21

Received: Jul 28, 2015

Accepted: Oct 28, 2015

DOI: https://doi.org/10.2478/fprj-2015-0001

© 2015 John Teale, published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.