What is FG21/1: The FCA's guidance on the fair treatment of vulnerable customers?
FG21/1 is a guidance issued by the Financial Conduct Authority (FCA) focused on the fair treatment of vulnerable customers by financial firms. It emphasises the importance of financial firms being able to properly identify, assess and support those customers who need additional guidance in a way that meets their needs and avoids treating them unfairly. Under this guidance, financial firms should have in place a clear and effective process for identifying vulnerable customers, taking into account any customer-specific information that may indicate vulnerability.
The goal of FG21/1 is to ensure that vulnerable customers are treated with empathy and understanding and that they are able to access the products and services they need easily. This allows them to make informed decisions regarding their finances and avoid financial difficulties.
FG21/1: The FCA's guidance on the fair treatment of vulnerable customers in financial services
For firms, FG21/1 translates into practical expectations: understanding the needs of vulnerable customers, equipping staff to recognise vulnerability, designing products and communications that work for them, and monitoring whether they receive outcomes as good as other customers.