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FCA publishes customer vulnerability guidance
By Duncan Ferris
23/2/21
Pension companies must work to understand the characteristics of vulnerability that are likely to be present in their target market or customer base, according to new guidance from the Financial Conduct Authority (FCA).
The regulator’s new guidance for firms on the fair treatment of vulnerable customers calls for companies from different ends of the financial services sector to be more aware of customers’ vulnerabilities, for example noting that common characteristics of pension customers may involve health and life events associated with old age.
It also noted that firms needed to be aware that some characteristics of vulnerability, such as bereavement and relationship breakdown, would be present in all sectors.
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rd February 2021 12:23 pm
The FCA has published final guidance to clarify its expectations of firms on the fair treatment of vulnerable customers.
The guidance aims to drive improvements and encourages firms to understand what harms their customers.
This can include poor health, low financial resilience, or other recent negative life events.
The regulator today said while not all people with these characteristics will suffer harm, they may limit people’s ability to make reasonable decisions or put them at greater risk of misselling.
FCA director of consumer and retail policy Nisha Arora says: “Protecting vulnerable consumers remains a key focus for us and given the impact of the coronavirus pandemic, it is more important than ever that firms get this right. The guidance being announced today will help ensure vulnerable consumers are treated fairly and achieve outcomes as good as other consumers.
Commenting following the release of the statistics, Quilter corporate affairs director, Jane Goodland, said on Friday: The positive news today that more than 60,400 savers across the UK have earned their first Help to Save bonus payment just in time for Christmas is welcome in what at present is a fairly gloomy news cycle. On the face of it these figures point to a scheme which is delivering what it set out to. The Help to Save Scheme is well-meaning and could make a big difference to those on lower incomes who want to put money away for their financial future.