Last week we saw the publication of the Financial Conduct Authority’s (FCA’s) response to its Consumer Approach consultation which contained some very positive news for those people interested in Vulnerability.
First of all, the FCA stated that it will be retaining it’s original definition of a vulnerable consumer as ‘someone who, due to their personal circumstances, is especially susceptible to detriment, particularly when a firm is not acting with appropriate levels of care’. Last year the FCA put forward a new definition which was too lengthy and too wide ranging and so following consultations with interested bodies they have now decided that they will not be proceeding with this revised definition.
Secondly, the regulator has committed to a new push on vulnerability with plans to introduce new guidance for firms to help them to identify and support new customers in vulnerable circumstances, which are scheduled to be published later in 2019. Unfortunately, early indications seem to indicate that this report will not address the much-needed question of data sharing, however, the VRS will be pushing for this topic to be included.