Protecting Senior Clients from Financial Abuse
The stories don’t always make headlines, but financial abuse is the most common form of elder abuse in Canada. And the clients most at risk often don’t see it coming, even when the warning signs are right in front of them. For advisors working with older clients, the potential for abuse is more than a compliance issue. It’s a matter of trust, empathy, and vigilance. And as our population ages, this challenge is only becoming more urgent.
The silent epidemic in plain sight
Aging and wealth are intersecting like never before. Canadians over 65 now hold more than half the nation’s financial assets, and many are managing this wealth while dealing with cognitive decline, chronic illness, or social isolation. That combination of vulnerability and financial responsibility creates an environment where abuse can thrive, especially when adult children or caregivers control access to information or accounts.
According to the Government of Canada, up to 10% of older adults will experience some form of abuse—emotional, physical, financial, or a combination. But because these clients may feel embarrassed, confused, or dependent on their abuser, incidents often go unreported.
In many cases, financial abuse comes not from scammers or strangers, but from family members, caregivers, or acquaintances. A client may grant someone power of attorney without understanding the implications. They may be pressured into “gifting” money, signing over property, or changing beneficiaries. And by the time they realize what’s happened, their wealth may already be gone.
Red flags every advisor should watch for
You know your clients. You’ve built relationships over time. That means you’re in a strong position to notice changes in behaviour or decision-making. It might start subtly: unusual withdrawals, missed meetings, or reluctance to discuss long-term plans. A new “friend” joining meetings. An older client expressing confusion over their own finances. Even excessive deference to an adult child can signal cause for concern.
None of these signs, on their own, prove abuse. But they warrant attention, and in some cases, intervention.
Start by fostering open, judgment-free dialogue
One of the most effective ways of protecting senior clients from abuse is also one of the simplest: give them space to speak. Encourage open conversations about money, family dynamics, and future needs. Invite questions. Acknowledge that planning can be emotional. The goal is to make your client feel safe, supported, and empowered to make their own decisions.
This is especially important when other parties are present. It’s good practice to schedule at least part of your meeting one-on-one with the client. That way, you can ask clarifying questions and gauge their understanding without outside influence.
Document decisions clearly and revisit them often
As an advisor, you sometimes have to walk a fine line. Clients are free to make unwise decisions if they’re competent to do so, and “unusual” choices are not necessarily “illegal” ones. That’s why documentation matters. Notes about conversations, stated intentions, and observed behaviours can be helpful if questions arise later.
So can regular check-ins. As a client’s health or support network changes, their vulnerability to abuse may increase. Annual reviews, estate planning conversations, and beneficiary updates all provide natural opportunities to revisit safeguards.
Know when (and how) to act
If you suspect abuse, tread carefully. Raising concerns too forcefully can damage trust or shut down communication. Instead, ask open-ended questions. Offer to connect the client with professional help. And if necessary, consult your firm’s compliance team or legal resources to understand your obligations.
For more serious situations, you may need to contact a provincial public guardian or adult protection service. Many advisors find these decisions difficult. But it’s better to err on the side of caution than to watch a client’s lifetime of savings slip away.
Insurance can be part of the solution
When properly set up, life insurance and segregated funds can provide an extra layer of protection. They allow clients to earmark funds for specific beneficiaries and can help prevent future disputes. Certain products also allow the client to lock in decisions while they are still of sound mind.
This is not a substitute for legal advice, but it is a meaningful layer of defense for clients whose wishes may one day be questioned.
Beneva is here to help
At Beneva, we believe protecting senior clients from abuse isn’t just about spotting red flags, it’s also about building trusted relationships, asking good questions, and helping clients put the right protections in place while they can.
Whether you’re reviewing a power of attorney arrangement or mapping out an investment portfolio, we’re here to support you with smart savings and investment solutions plus tools and insights that make a difference. Let’s work together to keep your clients safe, supported, and in control of their legacy.