'Firms must show FCA they are treating vulnerable clients fairly'

Today (September 11) Dave Anderson, from compliance consultancy UKGI, said firms must be able to evidence they are providing good outcomes for vulnerable customers.

The firm's head of technical, said: “It all comes down to tell me, show me, prove it. If you can’t evidence to the Financial Conduct Authority that vulnerable customers are being treated fairly then naturally they will assume that they’re not."

His comments came as part of a seminar titled, 'FCA's review of firms' treatment of customers in vulnerable circumstances' organised by the Association of Medical Insurers and Intermediaries. 

At the seminar UKGI compliance consultant, Robin Knowles, gave examples of good and poor practice highlighted by the FCA. 

He said: “The FCA expects firms to monitor the outcomes provided and identify where customers, or groups of customers, are getting those good outcomes, understanding why and then taking appropriate action to address the situation.”

However, Knowles pointed out, when the FCA asked a number of firms about their processes, most firms couldn’t point to improvements they had made, such as amending sales documents or changing claims processes. 

Additionally, some firms were unable to provide any evidence of actions taken at all, which Knowles said showed a “failure on their behalf”.

He acknowledged that, while this doesn’t necessarily mean they had not made improvements, the fact they were not documented or recorded meant they could not be evidenced in the right way.

Knowles suggested a number of actions firms could take, such as investing in appropriate training. 

He said firms’ employees need to engage with clients in a way that allows them to identify any potential triggers or vulnerabilities and take the time to understand these so that client needs can be considered. 

tom.dunstan@ft.com

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