The FCA's Principles of Business state that all customers should be treated fairly, and this expectation goes a step further with vulnerable customers.
When customers are in vulnerable circumstances, their ability to engage in financial services can be affected. A firm's attitude towards such customers could be detrimental as they may be less able to represent their interests.
The FCA aims to protect the interests of vulnerable customers, and they address customers in vulnerable circumstances in Focus 2: Setting & Testing Higher Standards of the FCA Business Plan for 2022/23. It's a firm's responsibility to meet the FCA's expectations and not to take advantage of these individuals.
A Financial Lives Survey revealed that 40% of individuals with health problems lack trust in financial services firms, indicating that investing in vulnerability would improve customer trust and loyalty. It also gives firms a competitive advantage and ensures they avoid fines for mistreatment of vulnerable customers.