The Financial Conduct Authority (FCA) has followed through on a commitment to launch a review into how financial services firms treat customers in vulnerable circumstances.
Under the regulator’s Consumer Duty, firms should act to deliver good outcomes for all customers, including those with characteristics of vulnerability.
The FCA said it will conduct a review into “how firms are acting to understand and respond to the needs of customers in vulnerable circumstances, and share our findings by the end of 2024.” This is in line with its 2021 commitment.
It added its review will look at firms’ understanding of consumer needs, the skills and capability of staff, product and service design, communications and customer service, and whether these support the fair treatment of customers in vulnerable circumstances.”
It will also look at the outcomes consumers in vulnerable circumstances receive and whether they’re as good as the outcomes of other consumers.
This will be supported by conducting consumer research and gathering information from firms and consumer representatives to make this assessment.
Rather than conduct a separate piece of work focused solely on age-related issues, the regulator said its review will look more broadly at how firms treat customers, including older customers, in vulnerable circumstances.
This, it explained, will enable it to understand whether those consumers most susceptible to harm are receiving good outcomes.