The Financial Conduct Authority, or FCA, is making some big changes to the way financial firms support their customers. One of the newest ideas is something called targeted support, which means giving more personal, flexible help to customers who may be struggling, especially those who are vulnerable.
For many businesses, it is a good idea to use FCA compliance consultants, such as https://www.adempi.co.uk/, to help understand how to apply these new rules. Compliance consultants can help companies identify gaps in their current processes and implement practical steps to improve support for vulnerable clients.
What is targeted support?
Targeted support means giving extra help to people who need it in a way that matches their situation. Instead of offering the same help to everyone, the FCA wants companies to take time to understand their customers and give support that works for them.
Why it matters
The FCA says that almost 50% of UK adults show at least one sign of potential vulnerability, such as low income, poor health, or life events such as bereavement or divorce. Companies have often used the same support options for all customers; now, the FCA believes this doesn’t go far enough. Under the FCA Consumer Duty, companies now have a clear responsibility to prevent people from harm and support them better.
To meet the new rules, financial businesses must:
- Train staff to recognise vulnerable customers.
- Offer different ways to communicate, such as by phone, email, or easy-to-read documents.
- Review products and services to make sure they are fair and clear.
- Keep a record of the support given and why.
Companies must explain things in plain language, check the customer’s understanding, and avoid pushing products that don’t meet their needs. These chances might include offering lower-cost financial products, guiding someone through complex pension choices, or pausing debt collection if a customer is seriously unwell.
Some companies have already made changes to meet these standards; for example, banks have introduced debit card blocks to help people avoid gambling debts and used video ID checks to enable housebound customers to prove their identity.
