Regulatory Timeline: Vulnerable Customers
Status: Final guidance issued.
Regulator: FCA
The FCA work on Vulnerable Customers started in July 2019. It’s progress has been delayed by the coronavirus pandemic, although it is also the case that the FCA appear to have used firms responses to the pandemic to help test and validate some of its work so far. Finalised Guidance was issued in February 2021 and firms should now be implementing any required changes and ensuring they are able to undertake the monitoring and evaluation of outcomes for vulnerable customers that the FCA require. We expect that they will be undertaking checks on this during 2021.
There are links with the work on General Insurance Pricing Practices and Distribution which firms should be conscious of.
This timeline provides key dates in the regulatory calendar and links to ICSR articles and webinars on the subject. If you would like to discuss any aspects of Vulnerable Customers, please contact us.
FCA Business Plan Confirms Commitment To Review Firms Treatment Of Vulnerable Customers
Commitment 2 of the FCA Business Plan for 2024/5 confirms the FCA will begin new work looking at the way firms are treating Vulnerable Customers.
Ensuring the fair treatment of customers in vulnerable circumstances
The FCA have issued guidance setting out its view of what firms should be doing to comply with their obligations to ensure they treat customers in vulnerable circumstances fairly.
FCA Finalised Guidance Issued
FG21/1 Guidance for firms on the fair treatment of vulnerable customers published.
Financial Lives 2020 survey: the impact of coronavirus
The FCA has released an update on its Financial Lives Survey, now including data on the impacts and experience of Covid-19, based on a Covid-19 panel survey in October 2020 with over 22,000 respondents.
ICSR Article: Coronavirus and Customers in Temporary Financial Difficulty: Updated Guidance
In an article looking at financial issues affecting customers as a result of the coronavirus pandemic, Nicky Hasler also considers how such issues could create vulnerabilities that need to be considered.
ICSR Article: Vulnerable Customers: Be Aware and Take Due Care
Craig Umbleja looks at the key issues for firms as they start preparing for the Policy Statement expected in Q1 2021.
FCA Consultation Period Closed
Financial Lives survey - results
Survey findings: Financial Lives: The experiences of vulnerable consumers
FCA Guidance Consultation Paper Released
GC20/3: Guidance Consultation and feedback statement Guidance for firms on the fair treatment of vulnerable customers. The FCA note that “We expect that more consumers will be in vulnerable circumstances since the onset of coronavirus (Covid-19), and many of those will be newly vulnerable and/or have multiple drivers of vulnerability.“
Vulnerability guidance animation
FCA Animated video: Treating vulnerable customers fairly.
FCA Guidance Consultation released
GC19/3: Guidance for firms on the fair treatment of vulnerable customers
FCA Business Plan 2020/21
The FCA Business Plan for 2020/21 is released. One of the key objectives highlighted by the FCA is to ensure “that the most vulnerable are protected.”
