Financial Conduct Authority
FCA launches consultation guiding firms on the fair treatment of vulnerable customers
The Financial Conduct Authority (FCA) yesterday launched a consultation on proposed guidance for firms on the fair treatment of vulnerable customers.
The guidance sets out the FCA’s view of what the FCA Principles require of firms to ensure that vulnerable consumers are consistently treated fairly across financial services sectors.
The FCA wants to see doing the right thing for vulnerable consumers deeply embedded in firms’ culture. Firms will need to think about what the guidance means for their business and customers, and how they are understanding and addressing the needs of vulnerable customers.
As part of the FCA’s priority to protect vulnerable consumers, it has been working extensively with stakeholders on this issue. Whilst many firms have made significant progress in how they treat vulnerable consumers, the FCA believes that there needs to be more consistency across financial services sectors. In some cases, firms are clearly failing to consider the needs of vulnerable consumers, leading to harm.
Christopher Woolard, Executive Director of Strategy and Competition yesterday said:
“Protecting vulnerable consumers is a key priority for the FCA and we want to see firms explicitly embedding the fair treatment of vulnerable consumers into their culture. Where we find that firms are not doing enough to ensure that consumers are treated fairly, we will take action.
“Firms need to take particular care to ensure that vulnerable consumers are treated fairly as they may be more likely to experience harm. The guidance should drive improvements across the industry, improving outcomes for millions of vulnerable consumers”.
The guidance will be consulted on in 2 stages and the FCA is asking for comments on this first stage of the consultation by 4 October 2019.
Notes to Editors
- Guidance Consultation Paper GC19/3: Guidance for firms on the fair treatment of vulnerable consumers
- Our Approach to Consumers
- Financial Lives survey 2017
Latest News from
Financial Conduct Authority
FCA clamps down on consumer investment harm19/01/2021 10:25:00
In a report issued yesterday the Financial Conduct Authority (FCA) highlights the many ways in which it works to protect consumers from investment harm by stopping and disrupting potentially harmful firms and activities.
Supreme Court judgment in FCA’s business interruption insurance test case18/01/2021 10:25:00
The Supreme Court recently (15 January 2021) delivered its judgment in the Financial Conduct Authority’s (FCA)’s business interruption insurance test case.
The final countdown: Completing sterling LIBOR transition by end-202112/01/2021 10:25:00
After many years of preparation, 2021 is the critical year for firms to complete their transition away from LIBOR.
FCA publishes coronavirus financial resilience survey data08/01/2021 10:25:00
The Financial Conduct Authority (FCA) yesterday published the results of its coronavirus (Covid-19) financial resilience surveys.
Brexit countdown for UK financial services sector29/12/2020 09:05:00
With less than one week to go until the end of the Brexit transition period, the FCA is urging financial services companies to ensure they are ready.
FCA fines Charles Schwab UK £8.96 million over safeguarding and compliance failures21/12/2020 15:10:00
The Financial Conduct Authority (FCA) has fined Charles Schwab UK Ltd (CSUK) £8.96 million for failing to adequately protect client assets, carrying out a regulated activity without permission and making a false statement to the FCA.
Blue Gate Capital Limited ordered to pay Connaught investors £203,00721/12/2020 11:10:00
The FCA has publicly censured Blue Gate Capital Limited (Blue Gate) and ordered it to pay £203,007 in restitution to investors who lost money investing in the Connaught Income Fund, Series 1 (the Fund).
FCA responds to independent reviews into its regulation of London Capital & Finance and Connaught18/12/2020 10:25:00
The FCA yesterday responded to the independent reviews of its regulation of London Capital & Finance plc (LCF) and Connaught Income Fund Series 1 and connected companies (Connaught).