The COVID-19 pandemic undoubtedly exposed an increasing number of clients to becoming vulnerable or temporarily vulnerable.
The FCA continues to expect that vulnerable customers remain a top priority for firms:
- Firms are to provide strong support and service to their customers, especially during the pandemic
- Firms should be proactive in assessing how their customers may be affected by the virus and take steps to help them
- Firms are to use flexibility to support customers
And critically:
- Firms are encouraged to take initiatives going beyond usual business practices to support their customers.
Types of vulnerability that may become more widespread
Types of vulnerability to be particularly vigilant of include:
- Scams and fraudulent attempts that are particularly prevalent during times of market instability, creating unwitting victims of financial crime
- Sudden bereavement – especially given the current social distancing requirements - undoubtedly causing significant distress
- Isolation, particularly in the elderly, that will increase stress and anxiety for many
- People facing unexpected job loss or income reduction who will be looking for urgent support to help them manage short term family finances
- Increased physical, financial or emotional stress suffered by carers or those discharging Power of Attorney