The FMA has revised its guidance on how vulnerable clients should be treated. The regulator says its advice includes additional information for the sector and provides further emphasis on the importance of how companies should treat customers facing vulnerable circumstances.
“Our updates highlight that anyone who provides financial services, no matter the size or business focus, must have business-appropriate support systems for customers in vulnerable circumstances,” says the FMA.
“There is no ‘one-size-fits-all’ approach to developing and embedding processes and practices related to customer vulnerability.
“However, a firm’s responses should reflect its scale, size and complexity, and consider the likelihood of its customers experiencing vulnerability.”
Drawing on research and policies from the UK, the FMA says a vulnerable consumer is someone who, due to their personal circumstances, is especially susceptible to detriment, particularly when a firm is not acting with appropriate levels of care.
“Central to addressing the needs of customers in vulnerable circumstances is the development and implementation of appropriate policies and procedures across the business,” says the FMA.
“Covid-19 has resulted in customer-facing staff and intermediaries encountering changing and more complex examples of customer vulnerability. This has required staff and intermediaries to have sufficient flexibility within their roles to effectively resolve these cases.”
Download the FMA’s revised advice for vulnerable customers here.