How does the FCA define 'vulnerable customers'?

The Financial Conduct Authority (FCA) defines 'vulnerable customers' as individuals who may be disadvantaged or face obstacles that make it challenging for them to access or benefit fully from financial services. This definition encompasses a wide range of situations including, but not limited to, physical or mental health issues, economic hardship, changes in personal circumstances, or even age, which can impact a customer's ability to make informed financial decisions.

Understanding this definition is crucial for financial service providers as they need to identify and support these customers appropriately. By recognizing the factors that contribute to vulnerability, firms can tailor their services and advice to ensure that these customers receive fair treatment and adequate assistance. This sensitivity to the needs of vulnerable individuals is a key principle in the FCA's consumer protection framework, which emphasizes the importance of equitable access and fairness in financial services.