On 14 April 2025, the Financial Conduct Authority (FCA) published the findings from its multi-firm review of how retail banks and building societies approach the treatment of customers in vulnerable circumstances that involve bereavement and power of attorney (PoA), highlighting examples of good practice and areas for improvement.
Background
As part of its review of how firms support customers in vulnerable circumstances, the FCA looked at how banks and building societies handled customer bereavement and PoA, considering in particular what outcomes customers received (in light of the Consumer Duty) based on its review of cases, firms’ governance, management information, staff training and outcome testing.
Findings
Overall, the FCA found that the firms reviewed had taken steps to refine their approach to the treatment of customers in vulnerable circumstances since the Consumer Duty was introduced. There was evidence of good practice in the support provided to customers, and that the Duty and the FCA’s Vulnerability Guidance had had a positive impact, but this was not universally the case and there were also areas in which all firms needed to improve.
The FCA sets out its findings, along with positive examples found during the review, in relation to: policies and procedures; identifying and responding to customer needs; outcomes testing and monitoring; and customer journeys.
Next steps
The FCA notes that it has written to all firms that were part of the review, highlighting its findings and the expected next steps. It warns that while most firms displayed good practices, there were also many areas for improvement and no firm should be complacent in this area.