More Protection for Vulnerable Consumers

The Financial Conduct Authority (FCA) has issued a consultation and guidance for firms on treating vulnerable customers fairly.  The FCA has been working with stakeholders to ensure firms are treating vulnerable customers fairly and not putting them at any risk.

Financial Services firms will need to address their understanding on the needs of vulnerable customers.

This is part of the FCA’s work in protecting vulnerable customers and although firms have made good progress in the treatment of vulnerable people, the FCA wants to see more consistency accross the financial services sector.

The Executive Director of Strategy and Competition at the FCA, Christopher Woolard said: “The FCAs priority is treating vulnerable customers fair and some firms are not doing enough to ensure this”.

He adds:  “This guidance is aimed to make improvements to the way firms deal with vulnerable people and if we find firms are still not doing enough the FCA will take action”.

Comment

The needs of vulnerable people, whether that is young or old, mental or physical issues should be part of the ethos of any financial services firm.  Core to that being access to services, access to buildings, flexibility of dealing, police checks on employees through to ease of use or understanding of the product or service based upon a person's understanding.  For example, we would not expect a person with a mental/learning disorder to be given a complex, full Self Invested Personal Pension (SIPP) that has invested in complex financial instruments.