The Financial Conduct Authority (FCA) has announced a review of consumer investment firms to assess the quality of support they provide to bereaved customers. The move comes after research revealed that only 47% of bereaved customers felt they received the support they needed from their financial providers.
FCA's Concerns and Expectations
Kate Tuckley, head of the FCA's consumer investments department, emphasized the importance of compassionate service during difficult times. "When someone loses a loved one, the last thing they need is confusing letters, delays and poor service from their financial provider," she said. "We want firms to design bereavement processes with people, not paperwork, at their centre. These processes are a real test of a firm's culture and key to consumer trust."
Review Process and Timeline
The FCA will contact certain firms in May as part of the review, with findings to be published later this year. The review will focus on companies that advise, manage, or administer investments, examining how they handle bereavement cases.
Previous FCA Action on Misleading Adverts
This announcement follows recent FCA action against misleading advertisements involving Martin Lewis. The regulator took steps against Conclusive Financial Ltd, a claims management company trading as PCP Refunds, for using unauthorized adverts featuring the consumer champion. These adverts falsely claimed consumers would receive an average of £1,846 in compensation for motor finance claims, without providing any evidence for these figures.
Martin Lewis expressed his delight on X (formerly Twitter) regarding the ban on these bogus adverts, which had no affiliation with him. The FCA required Conclusive to remove its advertising and update its website to comply with regulations.
Consumer Guidance
The FCA encourages consumers to remain vigilant against misleading financial adverts and to report any suspicious activity. For those dealing with bereavement, the regulator advises contacting financial providers directly to discuss available support services.
