FCA reminds firms on communication with vulnerable customers
The financial watchdog has reminded businesses of their duty to clients during the pandemic, particular…
14th May 2020 11:57
by Hannah Smith from interactive investor
The financial watchdog has reminded businesses of their duty to clients during the pandemic, particularly those who may not use online services.
The financial watchdog has warned firms it still expects them to deal with paperwork and post from customers in a timely manner despite the lockdown.
Reminding firms about their duty to vulnerable customers in particular, who may not use online services, the Financial Conduct Authority (FCA) said it realises that firms may struggle to manage important functions in a timely way during the pandemic. This includes processing post from customers and handling cheques.
While the regulator said it will “show flexibility” in its approach given the current challenges firms are facing, it still wants firms to protect their vulnerable customers.
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“Firms should try to ensure that all customers are not disadvantaged because of delays, and make particular efforts to contact customers who do not use online services,” the FCA said.
“We expect firms to provide general updates on how it will treat incoming and outgoing post and cheques, through its website and other public channels such as social media. These communications should update customers on market conditions, explain how customers can check their financial statements (which may arrive late) and invite customers to contact the firm if they wish.”
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Where face-to-face meetings are not possible but financial services firms need to carry out things such as suitability assessments, they should do them over the phone and carry out due diligence online, the regulator said.
A number of banks have introduced special measures to help elderly or otherwise vulnerable customers to continue managing their money. These include allowing friends and family members to withdraw money on their behalf, and allowing customers to cash cheques online.
Lloyds is distributing 2,000 tablet computers for free to isolated over-70s who do not have a device to get online. It has also set up a new, dedicated phoneline for them and is writing to eligible customers to inform them.
Meanwhile, Barclays is contacting all its vulnerable customers and offering 'Tea and Teach' sessions to show them how to bank online.
This article was originally published in our sister magazine Money Observer, which ceased publication in August 2020.
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