Virtual meetings are not without their downside.

Necessity – as the saying goes – is the mother of invention, and one of the many legacies of COVID will be the extent to which it massively accelerated the adoption of virtual client meetings.

Whilst widespread lockdowns forced a wide range of previously face to face forums (client meetings, Annual General Meetings, conferences, even Parliament) to pivot to virtual, the obvious convenience and cost/efficiency benefits of virtual meetings have seen them morph from an unwanted necessity to a preferred way of doing business across many industries and situations. This is especially true of financial advice, and the uptake of virtual meetings by advisers and clients alike has been strong, and likely to grow stronger with the potential scrapping of compulsory SOAs and other streamlining to flow from the Quality of Advice Review^[1].

But virtual meetings are not without their downside, and indeed there are many aspects of virtual communication that present new risk management challenges for advisers. These new risks include technology related risks around confidentiality and data security, the challenges in conducting virtual meetings in a compliant way, and challenges in judging client capacity and informed consent that arise in a virtual context. Indeed, effective communication and client engagement in general can be more challenging in a virtual setting unless appropriate planning and preparation is done in advance.

In this article we will explore some of the risks and considerations unique to virtual meetings, as well as practical tips on how to manage them, helping you ensure you can meet the undoubted client demand for more virtual engagement, within a strong framework of vital consumer – and adviser – protections.

Virtual meetings – the client perspective

The client benefits of virtual meetings are well documented. Avoiding the time and financial costs of travel, parking and preparation makes online meetings a lot less stressful. And people are naturally more relaxed in their own environments.

But what about the fear that clients find online meetings less engaging? Well, according to US advice client engagement expert Julia Littlechild, some advisers are guilty of False Consensus Bias, leading them to make assumptions about their client preferences and attitudes without ever asking them. (Indeed, one of the most fundamental risks is that we are engaging clients in a non-preferred channel).

Research^[2] conducted by Littlechild found that more than three quarters of advice clients said that it was still possible to have meaningful conversations with advisers in a virtual setting. A similar percentage said online meetings were the same or better than face to face meetings (a result which obviously varied by age – clients under 45 rated virtual and face to face meetings the same as each other).

The good news, then, is that most clients seem to like virtual meetings and don’t see them as inferior to meeting in person, so the risk of weakening client relationships is probably low. But is absolutely critical to ask them, rather than assume.

Virtual meetings – the adviser perspective

The popularity of online client meetings for advisers is easy to understand, with locational flexibility, lower cancellation rates and a more relaxed client contributing to more efficient and effective use of time.

(The fact that clients are more likely to attend these meetings, ensuring they keep up to date with the progress of their finances, is in itself a form of consumer protection.)

The proof, as always, is in the pudding, and the latest Netwealth research^[3] attests that the use of online meeting platforms is strong and growing.

According to their 2022 AdviceTech research, around 80% of Australian financial advisers are already using online meeting tools with clients, and a further 10% are planning to start using these tools in the next two years.

Virtual meetings – the ASIC perspective

According to ASIC, the law is technology neutral, meaning the way advice and information is delivered, and the way it is regulated, is treated the same:

RG 244.94 – “The Corporations Act is neutral about technology. This means that you can give factual information and advice by telephone, email, internet, video conferencing or face-to-face, or in any combination of these or other ways.”^[4]

RG 244.95 – “The way we regulate advice is the same, regardless of the way that you deliver the advice.”^[5]

(Readers may be impressed to learn that the reference to video conferencing was not some Covid related addendum by ASIC, this wording dates back to 2012!).

The summary – you can give advice virtually, but the same compliance requirements apply.

Cybersecurity risks

Whilst the ASIC case^[6] against RI Advice boosted adviser awareness of cybercrime, the Optus and Medibank data breaches made it front page news across the country.

By their nature, virtual meetings – the matters discussed, and the data exchanged and created as a result – are susceptible to additional layers of cyber risk compared to their face-to-face equivalent.

One of the most fundamental risks relates to the platform itself. Readers may recall in the early days of Covid, there was much discussion about the use of ‘Zoom’, and some major flaws in its security^[7].

Whilst most of these flaws have subsequently been addressed by Zoom (the preferred platform of most advisers according to the Netwealth study previously mentioned^[8]), they still provide valuable signposts for advisers to use when choosing and using a platform.

These early concerns included:

• privacy concerns over attendee tracking features
• the gathering of data by Facebook if the client had logged into Zoom using their Facebook credentials
• the strength of data encryption
• the location of data servers hosting meetings and recordings
• the use of file sharing within Zoom
• the ‘zoombombing’ phenomenon where uninvited guests could gatecrash theoretically private meetings.

Tips on choosing and using a virtual meeting platform

The Australian Government’s Cyber Security Centre^[9] recommends consideration of the following issues when assessing your current, or potential, virtual meeting platform:

• Is the service provider based in Australia? The use of offshore web conferencing solutions introduces additional business and security risks. For example, providers who are located offshore may be subject to lawful and covert data collection requests from their government, requiring them to access an organisation’s data without their knowledge. (Zoom offers paid subscribers the ability to choose servers located in Australia^[10]).
• Does the service provider use strong encryption? One thing to specifically look for is whether a web conferencing solution uses strong encryption, such as Transport Layer Security (TLS), to protect data while it is in transit. Also be aware of where the encryption takes place, as offshore encryption brings additional risks.
• What information and metadata does the service provider collect? Information and metadata can, and often will be, collected by a service provider. Such information can include (but is not limited to) names, roles, organisations, email addresses, and usernames and passwords of registered users, as well as information about devices they use.
• Are privacy, security and legal requirements being met?
• What is the service provider’s track record?

Making your virtual meetings more secure

When you have chosen your platform, the following steps can help you make your virtual meetings more secure:

• Configure your chosen platform securely: the default settings may not give you the level of security you need, so take the time to understand all the settings and adjust accordingly (these settings may include those relating to encryption and multi factor authentication).
• Do not share meeting links publicly or via unsecured platforms such as social media
• Auto-generate a new ID for each meeting: rather than using the same ID all the time (to reduce the risks of clients who log in early joining the wrong meeting).
• Require a password to join: use waiting rooms and lock out features where necessary.
• Ensure you are using the most up to date version of the platform software: updated software should reflect the most up to date threats.
• Be alert to unidentified/uninvited attendees
• Be aware of surroundings: be sensitive to what information can be seen, heard, and recorded. This may be more of an issue for your clients rather than you, depending on where they are logging into the meeting from. Even if they are at home, the need for privacy can still apply. Ask your clients to close the door of the room they are in. Headphones and microphones help limit the unintended sharing of sensitive information. Be alert to the position and visibility of screens as well, high-definition webcams increase the risk of participants unwittingly broadcasting private or sensitive details in their background.
• Don’t share files via meeting apps: some platforms (including Zoom) have their own file sharing facilities. Ignore these and use your own trusted sources (ideally client portals that require log ins).
• Use company provided devices with strong security and regularly updated antivirus protection
• If recording meetings, ensure you gain and document your client’s permission: remember that Australian Privacy laws apply to such recordings.
• Use a secure internet connection and ensure your client does also (not public Wi-Fi)
  
• Train your staff on these guidelines too

Communication risks

Regardless of format, money conversations can be challenging and carry the potential for a wide array of emotions and psychological responses, including anxiety and conflict.

Advisers should do everything possible to create an environment in which clients feel psychologically safe, emotionally present, confident, and secure in the relationship, so they fully engage in the conversation. A body of research suggests that this applies equally to both online and offline meetings^[11].

But whilst the use of virtual meetings need not undermine your ability to engage and build trust and rapport with your client, there are undoubtedly some unique challenges in communicating effectively in a virtual setting. Being confident you have genuine informed consent from your clients means these challenges need to be recognised and managed.

Obvious examples include clients multi-tasking and being distracted (common in households with young children and/or pets). Ensuring all attendees feel acknowledged can be more challenging if multiple clients are logging in from different locations (say a husband and wife each log in from their work location, or family members also attend).

More problematic though are the issues that arise because virtual meetings restrict our ability to use non-verbal cues and emotional intelligence to read a situation and communicate accordingly.

Hand movements, pauses, facial gestures and eye contact are all important components of non-verbal communication and using and monitoring them is done differently in a virtual context.

Take eye contact, for example. Because of the location of most cameras, individuals appear as though they are looking down rather than at the other person’s face and eyes.

To try and minimise this effect, ensure the camera is at the top centre of the primary monitor, minimising the gap between where you naturally look and the camera. Additionally, move the onscreen window with the clients to be as close as possible to the camera.

It is also important to not appear distracted if you need to break eye contact. For example, when looking at a second monitor with client information or taking notes, the client only sees that you are looking away from them. If two screens are necessary, informing clients what is on the other screen will help reduce distractions and enhance client connection.

Advisers should ensure that all participants in the session are visible to all in attendance. If multiple people are attending in the same location, the camera will need to be positioned so all people in the room are visible.

Consider sitting back from the camera so hands and arms can provide non-verbal cues.

In terms of the conversational technique, silence is an important skill for virtual meetings. Silence permits a client to reflect on what was said, while also allowing time to process their thoughts and formulate a response. Allowing additional time for a response to an open-ended question or prompting is also recommended, as is the use of small verbal and non-verbal signals to indicate you are listening and following (these can include nodding, smiling, or a few words encouraging clients to continue talking).

Given the increased level of potential distractions of clients logging in from home, it is helpful to periodically summarise what has been communicated and ask the client to summarise key points from their perspective.

Other factors which can influence the effectiveness of your communication include the physical environment and lighting. Lighting should be in front of you, not behind (which can be distorting). Virtual backgrounds are not recommended, as your appearance can sometimes be blurred, and they lack authenticity. A calming, simple, yet professional background (light walls, bookcase, pictures) can help relax your clients and build trust.

Of course, of critical importance here is how you appear from the client’s end, and for this reason it is recommended you test your set up with colleagues and fine tune accordingly.

Managing risk with older and vulnerable clients

Older clients, who may also be less tech savvy, present an additional set of risks to be managed.

One relates to client capacity. Picking up those red flags that suggest your client ‘s mental capacity (and decision-making ability) may be diminished can be more challenging in a virtual context. Be extra vigilant for signs that your client is struggling to comprehend what you are saying. Bear in mind that awkwardness in dealing with technology may be normal, and not in itself a case for concern. If in doubt, organise a face-to-face meeting and apply the normal techniques you would for assessing capacity^[12].

A second, more insidious risk relates to elder/financial abuse, and the extent to which virtual meetings may make it easier for perpetrators to coerce, direct, and take financial advantage of your clients. As well as being extra alert to any instructions you receive which may cause financial harm to your clients (including those involving Powers of Attorney), a simple precaution with virtual meetings involving more vulnerable clients is to do a check of who is in the room – at the start of a meeting and even periodically throughout. Have the client pan their camera around the room and do the same at your end to give them comfort your meeting is confidential.

Set expectations

The ultimate protection for your clients is to ensure they are relaxed and confident enough to communicate openly and fully during a virtual meeting, and in this context setting expectations around meeting format and technological issues is critical.

Consider creating a Virtual Meeting checklist or guide for your clients. This should incorporate many of the matters covered above, including:

• simple instructions and screenshots of the platform
• tips on creating a confidential and quiet environment
• the importance of secure networks and devices
• the steps taken to ensure the protection of data and privacy
• any preparation needed before a meeting
• common FAQ and troubleshooting
• document sharing protocols.

The optimal virtual experience is likely to be one which melds seamlessly with offline activities, especially where important documents are involved.

Conclusion

The surging popularity of virtual meetings for advisers and their clients is easy to understand, given their significant convenience and efficiency benefits. But they are not without their challenges, and they can pose unique and significant risks, including those relating to technology, data security, and communication effectiveness. By taking appropriate steps to mitigate these risks, advisers can ensure virtual meetings can enhance client engagement, and increase trust and rapport, in turn ensuring your advice is more effective, better understood and better appreciated.

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References:
[1] https://www.allens.com.au/insights-news/insights/2022/08/major-changes-proposed-to-financial-advice-regime/
[2] https://absoluteengagement.com/blog/what-do-clients-really-think-about-virtual-reviews
[3] https://www.netwealth.com.au/web/insights/netwealth-2022-advicetech/buyers-guide/
[4] https://asic.gov.au/media/tkqi11il/rg244-published-13-december-2012-20211208.pdf
[5] Ibid.
[6] https://asic.gov.au/about-asic/news-centre/find-a-media-release/2022-releases/22-104mr-court-finds-ri-advice-failed-to-adequately-manage-cybersecurity-risks/
[7] https://www.forbes.com/sites/kateoflahertyuk/2020/04/02/zoom-just-made-these-powerful-covid-19-security-and-privacy-moves-following-outcry/?sh=13d3147247ef
[8] https://www.netwealth.com.au/web/insights/netwealth-2022-advicetech/buyers-guide/
[9] <https://www.cyber.gov.au/acsc/view-all-content/publications/web-conferencing-security
[10] <https://www.bdo.com.au/en-au/insights/cyber-security/articles/things-to-consider-before-using-zoom
[11] https://www.financialplanningassociation.org/article/journal/APR21-facilitating-virtual-client-meetings-money-conversations
[12] https://www.adviservoice.com.au/2022/04/cpd-what-britney-spears-can-teach-advisers-about-guardianship-and-consumer-protection/

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