Regulatory Update

FCA Regulatory Update – March 2021

by Thornbridge

Guidance for firms on the fair treatment of vulnerable customers

Guidance for firms on the fair treatment of vulnerable customers

The FCA have published final guidance clarifying expectations of firms on the fair treatment of vulnerable customers. This will improve the way firms treat vulnerable consumers so that they are consistently able to achieve outcomes that are as good as everybody else. Firms should understand what harms their customers are exposed to, and ensure that vulnerable customers receive the same fair treatment and outcomes. This needs to happen through the whole customer journey from product design through to customer engagement and communications.

Click the link to read the final guidance from the FCA:

Sign-up for updates on the FCA’s new campaign tackling investment harm

Much of the consumer investments market meets consumers’ needs. But the FCA is worried some investors are being tempted – often through online adverts or high-pressure sales tactics – into buying higher-risk products that are very unlikely to be suitable for them.

Next week, the FCA will publish their research into self-directed investors’ behaviours, attitudes and financial resilience. The research will underpin their work in the consumer investment market and will help shape a new campaign to address the harm caused from consumers investing in high-risk, high-return, illiquid investments that may not be suitable for their needs.

No adjustment to Financial Ombudsman Service award limit

When the FCA increased the Financial Ombudsman Service’s award limit in April 2019, they said that each year, from 1 April 2020, the FCA would adjust the award limits for complaints referred to the service on or after 1 April 2019 to ensure they keep pace with inflation. Following the publication of the CPI figures for January 2021 there will be no adjustments made this year to the award limits set out in DISP 3.7.4R.

Click the link to read DISP 3.7:


The contents of this article are taken from the Financial Conduct Authority’s (“FCA”) March 18th 2021 regulation round up communication and are communicated by, and the property of, Thornbridge. Thornbridge is a trading name of Thornbridge Investment Management LLP which is authorised and regulated by the Financial Conduct Authority.

The information and opinions contained in this article are subject to updating and verification and may be subject to amendment. No representation, warranty, or undertaking, express or limited, is given as to the accuracy or completeness of the information or opinions contained in this article by Thornbridge Investment Management LLP or its directors. No liability is accepted by such persons for the accuracy or completeness of any information or opinions. As such, no reliance may be placed for any purpose on the information and opinions contained in this article.

Author: Thornbridge