The FCA has published a new webpage which sets out information and guidance for firms on how to support vulnerable customers when providing pension transfer advice. Firms should be alert to potential indicators of customer vulnerability and should create a suitable environment in which customers feel they can disclose their needs and are supported.
The FCA asks firms to assess their approach to vulnerability for pension transfer customers and take the following steps:
- identify when customers with DB pensions are likely to approach them for advice and design and deliver support to meet their needs;
- encourage customers requesting a pension transfer or advice to disclose information where they see clear indicators of vulnerability;
- tailor communications to retail customers, considering the characteristics of retail customers, including those of vulnerability; and
- where customers are based overseas, firms should also consider whether their customers are susceptible to scams or fraud and look for warning signs.
The webpage also reminds firms of the higher standards set by the Consumer Duty and includes examples of good and poor customer outcomes.