FCA to review how firms treat customers in vulnerable circumstances

The FCA has announced that it will conduct a review into the action firms are taking to understand and respond to the needs of customers in vulnerable circumstances. It will share its findings by the end of 2024.

During the review, the regulator will assess:

  • firms’ understanding of consumer needs, 
  • skills and capability of staff, 
  • product and service design,  
  • communications and customer service, 
  • and whether the elements above support the fair treatment of customers in vulnerable circumstances.  

The FCA also notes that it will examine whether the outcomes of consumers in vulnerable circumstances are as good as outcomes received by other consumers and will assess this by undertaking consumer research and gathering information from firms and consumer representatives.

Whilst in 2017 regulator suggested it would focus solely on age related issues, it has clarified that this review will look broadly at how firms treat customers, including older customers, in vulnerable circumstances to evaluate whether consumers most at risk of harm are receiving good outcomes.

The FCA has provided Guidance for firms on the fair treatment of vulnerable customers and implementation of Consumer Duty.

Additional support for firms  

For additional advice and assistance in ensuring that procedures and operations support good outcomes for consumers and embed the Duty, get in touch with UKGI Compliance at info@ukgigroup.com 

UKGI’s Group’s online learning platform, Development Zone, offers a wide range of useful courses to expand the knowledge and skills of learners, equipping firms to implement Consumer Duty across all levels and ensure that consumers are treated fairly.

All courses contribute to annual CPD requirements, helping firms to comply with regulations whilst unlocking the potential of their workforce. Check out the following courses:  

  • Vulnerability: Identifying, Understanding and Supporting Vulnerable Customers in Financial Services (Multi module course)
  • Consumer Duty: The Four Outcomes
  • Consumer Harm: Identification, Prevention, and the Consumer Duty
  • Supporting Consumers: Processes in the Product and Service Lifecycle
  • Consumer Duty – An Introduction

Get in touch at devzone@ukgigroup.com to find out more, or request a free 14-day trial to experience how the Development Zone can aid your firm.

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