MorganAsh comments on FCA vulnerability review findings

07 March 2025

Andrew Gething, managing director of MorganAsh, said:

“While it is positive to see the FCA is reporting good progress on supporting vulnerable customers, it’s absolutely clear that there is still real work to be done by a large number of firms. This is further proven by separate research released by the FCA, which shows vulnerable customers are still experiencing poorer outcomes.

“The review findings set out four key areas of improvement and picks up on many of key themes identified in its recent review of Consumer Duty board reports – particularly around the clear lack of good quality data.

“Whether it’s effective outcomes monitoring, appropriate support for both staff and customers or clear communications, the take up of technology to support firms in meeting these requirements remains very slow. While some are waiting on the wider distribution chain for answers, others are trying to build their own or bolt on to existing systems. Then there are those trying to meet these requirements with no tech at all – something even the FCA has recommended against.

“In truth, technology already exists in the market to help identify vulnerable customers, monitor outcomes and even provide suitable next steps at the very moment vulnerability is identified – something that is incredibly hard to do with frontline training alone. This gives firms the robust data to monitor all outcomes throughout the customer journey and report on this as required. As ever, consistent and objective assessment remains the most effective and cost-efficient way to unlock the data firms need.

“As many other reports have identified, it is clear that there is still a huge knowledge gap surrounding customer vulnerability and Consumer Duty. With no changes announced to current guidance or expectations, we now have a platform to ensure firms truly understand the requirements, why it is important and what strategies, training and technology they can put in place. This will be the theme of workshops we are set to launch to support firms in their customer vulnerability journeys and in their efforts to meet the regulator’s requirements.”