The FCA’s new publication on vulnerable customers: Delivering good outcomes for customers in vulnerable circumstances – good practice and areas for improvement
Last week, the FCA released a crucial publication, shining a spotlight on good and poor practices when it comes to supporting vulnerable customers in financial services.
The guidance is another clear call to action for organisations to treat vulnerability with care and respect – because when it comes to vulnerable customers, doing it right can make all the difference.
Here’s a breakdown of what the FCA considers good and poor practice:
| ✅ Good Practice | ❌ Poor Practice |
| Proactive identification: Firms who actively seek out and identify vulnerable customers, not just wait for customers to self-disclose their vulnerabilities. | Ignoring vulnerability: Failing to recognize the signs of vulnerability, or worse, treating vulnerable customers the same as everyone else. |
| Tailored support: Offering personalized solutions, such as extended payment terms or providing a dedicated point of contact for vulnerable customers. | Lack of tailored solutions: Offering one-size-fits-all solutions that don’t meet the specific needs of vulnerable individuals, leading to potential harm or exacerbating their situation. |
| Employee training: Ensuring staff are equipped with the skills and understanding to spot signs of vulnerability and respond with empathy and care. | Ineffective staff training: Not providing proper training for frontline staff, leaving them ill-equipped to handle vulnerable customers with care. |
| Clear, accessible communication: Providing information in a way that is easy to understand for all customers, including those with disabilities or language barriers. | Complex language & communication: Using jargon-filled, unclear messaging that makes it difficult for vulnerable customers to understand their options or rights. |
The FCA’s message is clear: Good practice in supporting vulnerable customers isn’t just about compliance—it’s about doing the right thing. Treating vulnerable individuals with the empathy and support they deserve strengthens customer trust, improves outcomes, and ensures long-term success.
How is your firm aligning with the FCA’s guidance? Are you implementing good practices, or could there be room for improvement?
