Interested in a simple Skills Scan and Learning Progress Tracker tool for the Debt adviser standard?
Knowledge
K1: How to verify and record customer identity before providing debt advice, in accordance with both data protection (GDPR), Financial Conduct Authority (FCA) regulation and organisational procedures. Debt Advisers will know the procedures for working with formal and informal advocacy and the relevant consents and authority to act.
K2: How to recognise the signs of customer vulnerability, and how to identify the likely impact that has on both the customers’ financial and general well-being. They must know how and when to sign-post the customer to other forms of support. When to escalate an issue within their own organisation, or externally.
K3: How to establish their customers overall financial circumstances, impact of vulnerabilities, future aspirations, income, outgoings, and debts. How to identify key information likely to affect the customers overall financial situation and decision-making.
K4: The wide potential range of income and capital types such as wages, benefits and savings. How to collect, verify, calculate and manage data relating to the customers income in order to calculate gross, net and disposable income.
K5: Debt types including secured debts (for example mortgage debt), consumer credit debts (for example catalogue debt), priority debt arrear (such as utilities), and informal debts (for instance to friends and family). The Debt Adviser must know the recovery processes and rules for all these debt types. What makes a debt a fraudulent debt and know the procedures needed in these circumstances. The Debt Adviser will know and understand Industry expenditure guidelines.
K6: How to gain the necessary intelligence on the creditor & their typical behaviours, including the creditors normal stance and appetite for interest suppression, negotiation, debt waiver, and legal action.
K7: The range of both debt solutions and expenditure reduction options available, including the costs, benefits, and financial implications for the customer. Income maximisation and the general options available such as employment opportunities and benefit entitlement.
K8: How to access and keep up to date with Financial Conduct Authority rules, guidance and principles relevant to the provision of debt advice / debt counselling.
K9: The ethical standards that the organisation and sector requires of Debt Advisers and the implications of these for the role i.e. Professionalism, honesty, Integrity.
K10: How to create, verify and record customer information securely using an organisations IT system.
Skills
S1: Correctly identify the customer and/or any customer advocate by applying regulations and organisational procedures. Identifies the likely impact of vulnerabilities on the customers ability to manage their finances and general well-being.
S2: Creates a realistic financial statement and budget for the customer by asking open and closed questions needed to illicit the full facts, including a root-cause analysis. (This will often be in sensitive or difficult circumstances for the customer).
S3: Represent payment offers and customer circumstances to creditors, adjusting the approach to help ensure the best outcome. Actively influences changes in customer behaviour that is in the customers own best-interests, such as adopting life-style changes that will reduce outgoings.
S4: Identifies external stakeholders relevant to the customer. Creates and maintains a network of stakeholders needed to expedite casework effectively and to conclusion.
S5: Recognises their own value within the team and the impact of their actions on others working in it. Collaborates and supports colleagues internally and stakeholders externally to achieve results whilst also being able to work independently. Builds and maintains positive relationships within their own organisation.
S6: Applies organisational quality standards in order to deliver effective outcomes within the risk, regulatory and governance requirements. Plans and prioritises activity accordingly to effectively manage competing work demands.
S7: Adapts the advice provided taking account of the customers history, including for instance previous advice given and whether this was heeded. Considers both their analysis of the evidence and application of the Regulatory Framework to what is most likely to work well, tailored to the individual customer. Recommends a product, combination of products, or sign-points the Customer to other assistance as appropriate. Articulates to customers who do not wish to proceed with the given recommendation (some of whom may be insistent) why the debt solution recommended is the most appropriate. Take account of the customers own preferences, the term of debt relief and future changes to determine whether alternative solutions are appropriate.
S8: Communicates effectively with customers, colleagues, professional contacts and third parties using written and verbal communication. Offers a clear and full explanation. Uses suitable empathy with the customer to enable a positive outcome.
S9: Recognise, monitor and respond to debt advice events (such as change in circumstances) that will trigger a new or updated assessment.
Behaviours
B1: Displays honesty & integrity in actions and approach to work and customers. Is ethical and non-judgmental and demonstrates the principle of utmost good faith. E.g. acts honestly when dealing with customer queries, ensuring they are treated fairly whilst upholding brand values.
B2: Empathetic and un-bias approach to supporting customers. Show the necessary resilience and stand by difficult decisions.
B3: Takes responsibility for their own continuous professional development, and actively records development in their current role.
B4: Both hears and listens actively to what the customer has to say. Has a probing, inquisitive approach to questioning. Provides assuring responses to help engage the customer where needed.
B5: Supports the customer to make their own informed financial and lifestyle decisions. Takes ownership for the customer journey to an appropriate conclusion.
B6: Strives to resolve customer concerns at the earliest opportunity. Receives and handles objections in a calm, professional manner.
Duty 1
DUTY: Debt advice regulations - Perform their day-to-day duties in accordance with the requirements covering all aspects of the Financial Conduct Authority's regulatory framework, guidance and Principles.
K1
K2
K7
K8
S1
S2
S7
S8
B1
B3
B4
Duty 2
DUTY: Know your customer - Validate customers’ identity and assess their Mental Capacity to make informed decisions at every touch point and respond accordingly. Where the customer is represented by an advocate, validate they have the correct authority to act.
K1
K2
K3
K8
S1
B1
B2
B4
B5
B6
Duty 3
DUTY: Develop a budget - Gather and assess customers’ financial situation, relevant personal circumstances and foreseeable events to ensure the most suitable advice is provided.
K2
K3
K4
K5
K7
K8
S2
S7
S8
S9
B1
B3
B4
B5
Duty 4
DUTY: Make a recommendation - Provide professional, compliant and suitable debt advice - provide an accurate financial statement and reflective suitability statement.
K2
K3
K5
K6
K7
K8
K9
S3
S7
S8
S9
B1
B2
B4
B5
Duty 5
DUTY: Evidence - Gather and analyse evidence to support the recommendation such as wage slips, credit reports.
K3
K4
K8
K10
S2
S5
S6
S9
B4
B5
Duty 6
DUTY: Financial capability - Provide both budgeting advice and income maximization opportunities ranging from switching energy suppliers to benefit entitlements.
K2
K4
K7
K8
K9
S3
S4
S7
S8
S9
B1
B4
B5
B6
Duty 7
DUTY: Extra support - Assess whether other organisations are likely to assist the customer (financially or otherwise) either through specialist guidance or direct support. Sign-post and make referrals as appropriate to organisations in the commercial, public and not-for-profit sectors. Identify the impact of vulnerabilities and provide extra support or signposting (as appropriate) in order to safeguard the customers best interests.
K2
K3
K8
K9
S4
S5
S7
S8
S9
B1
B4
B5
Duty 8
DUTY: Record keeping - Produce accurate and good quality record keeping to enable a consistent and smooth customer journey.
K2
K8
K10
S5
S6
S8
B5
Duty 9
DUTY: Expressions of dissatisfaction - Identify and respond to expressions of dissatisfaction and seek early resolution or escalation where required.
K2
K9
K10
S3
S7
S8
B1
B2
B4
B6
Duty 10
DUTY: Debts and assets - Set realistic expectations with customers in order to agree the next steps and prevent detriment. Clearly articulate any risks in terms of expected creditor behaviour asset liquidation and enforcement action.
