The Financial Conduct Authority (FCA) has highlighted that banks
and building societies can improve how they treat customers
affected by bereavement or registering a power of attorney.
Since the introduction of the Consumer Duty, some firms are
making a real difference with clear policies and procedures and
actively using data to better identify needs and support their
customers. However, some firms' staff are unclear on the actions
they need to take and how quickly.
In some cases, this meant some individuals and their
representatives were unable to access funds to pay essential
bills. There were examples of customers who struggled to get
support during an emergency, such as a mental health crisis,
adding to their distress.
The regulator has published good and poor practice to help firms
provide the right support by being adaptable and putting
consumers' needs at the forefront of everything they do, which is
consistent with the Consumer Duty.
This multi-firm review fed into the wider work on how financial
services firms are treating vulnerable consumers but also has
specific findings that are relevant for banks and building
societies.
Emad Aladhal, Director of Retail Banking, FCA said: “Dealing with
a bereavement or setting up a power of attorney can often be
stressful and emotional.
"When banks and building societies get it right for their
customers they can make a real difference at a difficult time.
But when they fail to recognise and respond to customers who need
more help, it adds to the stress. All firms should consider where
they can make improvements.
“Our message to consumers is this - if you need to notify your
banking provider about a bereavement or a power of attorney,
speak to them about how they can support you and meet your
needs.”
The FCA issued guidance to help financial services firms support
consumers in vulnerable circumstances in 2021 and introduced the
Consumer Duty in 2023, which requires firms to deliver good
outcomes for all customers, including those in vulnerable
circumstances.
As part of its 5-year strategy, the FCA will focus on helping
consumers navigate their financial lives and make better informed
financial decisions, and the Consumer Duty will be integral to
how firms treat their customers.
Notes to editors
