FCA: Investment firms fall short of Consumer Duty vulnerability and data sharing requirements
The FCA has seen evidence that some companies view vulnerability as a 'low priority', whereas other have not considered it at all.
During a webinar on Wednesday (6 December), Kate Tuckley, head of consumer investment at the FCA, said the regulator was «relatively disappointed» in the way some investment firms have been approaching vulnerability and information sharing.
She said the FCA had seen evidence that some companies view vulnerability as a «low priority», whereas other have not considered it at all, resulting in the lack of support to vulnerable consumers.
«In our recent Wealth Data survey, we highlighted that 49% of portfolio managers and 69% of stockbrokers identified no vulnerable customers,» she said.
«Yet 50% of us will be classed as vulnerable consumers at some point over our lifetime. We are therefore exceptionally concerned that firms are just not thinking widely enough on this topic.»
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She noted some firms have been taking a «very narrow» approach, equating wealth to a lack of vulnerability, when that is often not the case.
Looking at areas of poor practice, Tuckley provided examples of businesses automatically assessing consumers as vulnerable if over a certain age. Such a blanket approach «does not really get to the heart of assessing vulnerability», she said, emphasising the need for a «more nuanced approach».
However, she did acknowledge that consumers over a certain age may demonstrate and exhibit characteristics of vulnerability.
Tuckley continued: «We have also seen some evidence that firms ask their consumers to self-identify vulnerability and then provide the evidence to back that up. We do not think that is good enough.
»And we have also seen some
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