FCA Draft Vulnerability Guidance: Embedding 'Doing The Right Thing' In Firms' Culture

The FCA has published a consultation on proposed non-Handbook guidance for firms on the fair treatment of vulnerable customers. The FCA reiterates that vulnerability is one of its key priorities and makes it clear that the draft guidance sets out its view of what its Principles for Businesses require of financial services firms to ensure the fair treatment of vulnerable consumers. Firms with existing policies and processes for fair treatment of vulnerable consumers should be looking to review them to make sure they meet their obligations under the Principles and plug any gaps.

What's the rationale?

According to the FCA's 2017 Financial Lives Survey, half of UK adults (25.6 million people) display one or more characteristics of potential vulnerability. The FCA wants to see 'doing the right thing for vulnerable consumers deeply embedded in the culture of firms'.