Over the past few years, the FCA has placed significant emphasis on client vulnerability within financial services, which has led to numerous changes for regulated firms – hopefully, we can all agree, for the better.

We’ve seen various processes implemented: from vulnerability registers, questionnaires, training, all the way through to tech amendments; for example, the implementation of vulnerability flags on back-office systems highlighting where vulnerabilities exist.

Due to the nature of vulnerability and its different characteristics, the implementation of vulnerability processes has not been easy. Each firm we work with has taken their own individual stance in order to implement the process that best suit their current and potential vulnerable clients. But there is still an element of flexibility needed.

If we start at the beginning with reviewing what the FCA defines as a vulnerable customer we read that it’s: “Someone who, due to their personal circumstances, is especially susceptible to harm, particularly when a firm is not acting with appropriate levels of care.”

Read more in our Nucleus article here.