View more on these topics

Three ways to ensure the fair treatment of vulnerable clients

The FCA has recently updated Occasional Paper No. 8, within which it explains a vulnerable consumer as such: “… someone who, due to their personal circumstances, is especially susceptible to detriment, particularly when a firm is not acting with appropriate levels of care.”

The focus on this area seems to be continually increasing. So what should firms do to ensure it is treating all customers fairly?

1. Audit your current procedures. Look at your processes, such as how you communicate in writing, product/suitability report wording, how you deal with clients face to face and on the telephone. If you knew they were vulnerable, what would you do differently? Can you simplify wording in documents while remaining compliant?

Most importantly, though: how can you tell if a client is vulnerable? Remember clients can be temporarily vulnerable, too. How would you assess this? It might be through things they say to you, such as asking you to repeat yourself.

2. Develop a written policy and make sure all your staff are clear what to look for. Everyone in your firm needs to understand how to spot a vulnerable client and how to alter their behaviour accordingly. For instance, passing a vulnerable client from person to person over the phone would only serve to confuse them.

3. Regularly evaluate and monitor how the procedures are working. How do you know you are getting it right? Have staff had any problems or difficulties in spotting vulnerable clients?

Jacqueline Lockie is deputy head of financial planning at the Chartered Institute for Securities & Investment


Will-deed-IHT-estate planning-700x450

How to leave a legacy for vulnerable adults

Tom has three adult children, one of whom, Mary, has learning difficulties. He has approached his adviser because he is concerned about making gifts to her in his lifetime and how he should leave her a legacy on his death. He wants to make sure she is suitably provided for. The solution The adviser informs […]


FCA chief debates vulnerable customers vs caveat emptor

FCA chief executive Andrew Bailey says the regulator’s role is to protect vulnerable consumers while striking a balance with individual responsibility. Yesterday the regulator launched its “mission” consultation, a set of principles that will inform the regulator’s strategy and day-to-day work. Speaking at Mansion House last night, Bailey said the regulator is “more on the […]


Out in the cold: Are providers doing enough to protect the vulnerable?

Pension providers run the risk of “cutting loose” vulnerable savers if they do not find better ways of monitoring signs of cognitive decline in ageing customers. The pension reforms have handed customers “freedom and choice”, with FCA data showing a third of the 37,150 customers entering into drawdown between October and December opting to do […]


News and expert analysis straight to your inbox

Sign up


There are 2 comments at the moment, we would love to hear your opinion too.

  1. How does this requirement apply to Robo advice? I await the FCA’s study into this with interest but I guess there is not the appetite as there are bigger fish to fry.

  2. Neil Liversidge 26th July 2017 at 10:16 am

    Sorry Jacqueline but your ideas can be summed up as “write procedures and be bureaucratic”. Schools have the same mentality around anti-bullying policies. Reams of drivel get written and guess what, kids still get bullied. You’d have done better to give practical examples of what firms can actually write into their procedures, e.g. 1. Use large type for the visually impaired. 2. Encourage elderly clients to have a close family member involved in the planning. 3. Insist on a senior staff member being involved in any large one-off withdrawals to ensure they are not being syphoned off by greedy relatives or by ‘travellers’ pretending to fix their roof. One reason why I lack patience with a lot of compliance / regulatory types is that they propagate the fantasy that, if advisers are buried in mountains of procedures, they will somehow deliver good outcomes. That simply does NOT follow.

Leave a comment