Regulatory News: FCA to carry out a review of firms and how they treat vulnerable customers

Posted on: 18 March 2024

Written by: Jennifer Cahill

Last Friday, the FCA announced that it would conduct a review of the actions that firms are taking to understand and respond to the needs of customers in vulnerable circumstances. The review will determine whether firms are supporting vulnerable customers fairly and delivering outcomes for them which are as good as for other customers, by looking at:

  • firms’ understanding of customer needs;
  • the skills and capability of staff;
  • product and service design; and
  • communications and customer service.

Also, as part of this review, the FCA will conduct consumer research and gather information from firms and consumer representatives. They will share their findings by the end of 2024.

Vulnerability is a keystone of Consumer Duty and the treatment of vulnerable customers has been high on the FCA’s list of priorities for a number of years (this link provides very helpful guidance on dealing with customer vulnerabilities). When Consumer Duty was launched, the FCA said it would apply a “vulnerability lens” to its supervisory and enforcement activity and it certainly appears that it is delivering on its word.

Please do get in contact if you would like to discuss your approach to dealing with vulnerable customers, or have any queries about what you are expected to do.

CONTACT US

Jennifer web

Jennifer Cahill

Jennifer is an Associate Director at Cosegic.

Contact Jennifer

Related resources

All resources
iStock 1181983763 Event

Webinar: Immediate Consumer Duty priorities and how to achieve customer understanding

iStock 1437540145 Article

More time for payment service providers to investigate suspected fraud

iStock 1166187829 Article

Does the FCA consultation on enforcement signal a more aggressive approach?

faris mohammed j4df6 DS3II unsplash v2 Article

GAP Insurance – What is the current state of affairs?