UK FCA launches review of investment firms' support for bereaved clients

The Financial Conduct Authority (FCA) has begun a review of how investment platforms, advisers and wealth managers handle the needs of customers who have lost a loved one. The regulator’s research shows only 47% of bereaved individuals feel they receive adequate assistance, citing confusing correspondence, delays in obtaining asset valuations and difficulty accessing offshore cryptocurrency holdings.

The review will examine the entire customer journey – from the initial notification of death through to settlement or transfer of assets – assessing communication, support for vulnerable clients, service standards and fee handling. Kate Tuckley, head of the FCA’s consumer investments department, said the aim is to put “people, not paperwork” at the centre of processes. From May the FCA will contact selected firms, with findings to be published later in the year, highlighting good practice and areas for improvement. The initiative follows similar FCA examinations in retail banking and insurance, and comes after a recent NS&I payout issue that left bereaved families missing out on savings pots.

The regulator hopes the review will drive cultural change within firms and improve consumer trust in the investment sector.