Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether his Department takes steps to help protect vulnerable customers in instances where the Financial Conduct Authority is unable to.

The Government works closely together with regulators, the financial services industry and other stakeholders, to ensure that all consumers of financial services receive appropriate protection.

The Government has a range of work underway which will improve support for vulnerable consumers, including legislating to protect access to cash through the Financial Services and Markets Bill, and piloting a No-Interest Loans scheme which aims to help consumers in vulnerable circumstances who struggle to access affordable forms of credit.

In February 2021, the FCA published its finalised guidance for firms on the fair treatment of vulnerable customers, setting out a number of best practices (https://www.fca.org.uk/publications/finalised-guidance/guidance-firms-fair-treatment-vulnerable-customers). This applies to all firms where the FCA Principles for Business apply, regardless of sector, and in respect of the supply of products or services to retail customers. This guidance explores, among other things, how firms can understand the needs of vulnerable customers and provide targeted services for this cohort. Examples range from staff having the skills and capability to recognise and respond to the needs of vulnerable customers to product and service design, customer services, and communication.

The Government also continually keeps the FCA’s regulatory perimeter under review, and works with the regulators to consider calls to amend the perimeter.