Consumer Duty: How can we better assess client vulnerability?

Advisers need a more consistent means to assess vulnerability

clock • 3 min read

Consumer vulnerability is a major concern for the regulator and features heavily in Consumer Duty. Those giving financial advice need to be able to ensure they identify vulnerable clients in a way that is consistent and auditable, argues Nick Hall

The terms ‘vulnerable' and ‘vulnerability' feature on 40 of the 85 pages of the main body of the Financial Conduct Authority's Consumer Duty document. This is a clear indicator as to the importance that the regulator places on ensuring that advice firms are able to both identify and successfully manage vulnerable clients. No matter from where a firm draws its client base, it is likely a percentage of clients could be vulnerable. While we might typically associate vulnerability with health, disability and the effects of advancing age, it can also be triggered by a change in the client'...

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