Recogning Financial Abuse

Financial abuse rarely announces itself with fanfare. It creeps in quietly, hidden in bank transfers, unexplained withdrawals, sudden secrecy, or subtle shifts in a client’s confidence. Yet its impact can be devastating.  Abuse strips people of autonomy, safety, and long-term financial security.  Recognising financial abuse is a vital skill for advisers.

That’s why I was pleased to contribute to a recent ifa article exploring the role advisers can play in recognising and responding to financial abuse. You can read the full piece here: IFA Article.

What do the Numbers Show?

The numbers alone remind us why this matters.  According to the Australian Bureau of Statistics, 16% of women and 7.8% of men will experience financial abuse during their lives. It’s one of the least understood and least visible forms of domestic violence.  Yet financial advisers, almost uniquely, sit close enough to the day-to-day realities to see the early signs.

At Wealth Planning Partners, we’ve always believed that advice goes far beyond the figures on a page. We work deeply with clients, understanding their family dynamics, stress points, and aspirations. Because of this, advisers are often among the first professionals to sense when a client’s freedom to make decisions is being influenced or controlled.  It assists if you know how to recognise financial abuse.

Advisers Aren’t Investigators

This doesn’t mean advisers are investigators, nor should we be. But we are well placed to observe, record, and refer concerns using appropriate channels. However, this aligns closely with the FASEA Code of Ethics which require advisers to act in clients’ best interests and to support informed, free, and independent decision-making. If a client’s autonomy is compromised, it becomes incredibly difficult to fulfil those obligations.

The Financial Advice Association Australia’s recent adoption of the ATO’s guidance on identifying and reporting financial abuse is an encouraging step forward. But there is still more to be done. As highlighted in the article, clearer frameworks, better collaboration, and mandatory education for the profession would ensure advisers feel confident and supported when navigating these sensitive situations.

Trusted Advisers

Protecting vulnerable clients is not a “nice to have” or an optional extra — it’s central to what it means to be a trusted adviser. When we help safeguard a client’s financial wellbeing, we safeguard their dignity, independence, and safety too.

If you or someone you know is experiencing domestic or family violence, support is available.
1800RESPECT (1800 737 732) — 24/7 confidential counselling and information.
For financial abuse assistance: Centrelink Social Work Services — 132 850
Good Shepherd’s Financial Independence Hub — 1800 946 373