This is the latest guidance from the FCA (Feb 21) around the treatment and guidelines for treatment of vulnerable customers. This document contains the detailed guidance and examples for use by firms in the UK.
Summary
The document is a part of the Financial Conduct Authority’s guidance for firms on the fair treatment of vulnerable customers. It emphasizes the importance of delivering appropriate customer service that responds flexibly to the needs of vulnerable consumers. The guidance covers various aspects of customer interactions, including assessing vulnerability, recognizing communication needs, providing tailored support, and monitoring outcomes for vulnerable customers.
Key Summary Points
- Firms should build flexibility into existing customer services to meet the individual needs of vulnerable consumers.
- Staff should be empowered to adapt their approach, taking extra time or flexible steps to respond to vulnerable consumers’ needs.
- Firms should consider how to alter customer service processes to accommodate consumers with additional needs, such as providing Braille or audio communications.
- Self-service options should be flexible to allow consumers to pause or exit the process and access more help or personalized service.
- Firms should support consumers with impaired capacity or decision-making ability and consider making reasonable adjustments under the Equality Act 2010.
- Providing third-party representation options and ensuring appropriate safeguards reduce the risk of abuse.
- Firms should communicate information about help and support options available to vulnerable consumers, making it easy to access and use.
- Clear processes should be in place to record and access relevant information about vulnerable consumers, minimizing the need for repetitive disclosure.
- Communications and information about products and services should be presented in ways that are understandable for vulnerable consumers, considering their specific needs.
- Firms should check that vulnerable consumers comprehend the information provided, offer support, and avoid rushing them into decisions.
- Offering a choice of communication channels and being aware of consumers’ communication preferences can help meet their needs effectively.
- Firms should implement quality assurance processes to evaluate where the needs of vulnerable consumers are not being met and make improvements accordingly.
Key Takeaways
- Firms should prioritize flexibility in customer services to meet the needs of vulnerable consumers.
- Clear communication and accessible formats are essential for ensuring vulnerable consumers understand information about products and services.
- Firms should proactively provide support and check understanding, especially for consumers with impaired capacity.
- Offering a variety of communication channels helps accommodate different communication preferences and needs.
- Monitoring and evaluation processes are crucial for identifying areas where the needs of vulnerable consumers are not being met and making necessary improvements.
RO-AR insider newsletter
Receive notifications of new RO-AR content notifications: Also subscribe here - unsubscribe anytime
