Investment firms' bereavement support under FCA review
The Financial Conduct Authority (FCA) is reviewing how consumer investment firms support bereaved customers. This follows research indicating that fewer than half of affected customers felt they received adequate support.
Firms' processes under scrutiny
The FCA's review targets firms that advise, manage, or administer investments, including platforms, advisers, and wealth managers.
It will scrutinize the entire customer journey, from the initial notification of a bereavement through to the final settlement or transfer of investments.
Key areas of assessment include communication practices, support mechanisms for vulnerable customers, adherence to service standards, and the handling of fees on accounts impacted by bereavement.
This initiative follows previous FCA reviews in retail banking and insurance, which similarly uncovered issues such as unclear processes, repetitive information requests, and avoidable delays for bereaved customers.
The FCA aims to identify and promote good practices while addressing inconsistencies across the sector.
People over paperwork
Kate Tuckley, head of department for consumer investments at the FCA, emphasized the importance of customer-centric processes.
She stated, 'When someone loses a loved one, the last thing they need is confusing letters, delays and poor service from their financial provider.'
Tuckley added that firms should design bereavement processes 'with people, not paperwork, at their centre,' highlighting these as a 'real test of a firm's culture and key to consumer trust.'
This review is a priority under the FCA's Consumer Investments Regulatory Priorities.
The FCA will begin contacting selected firms from May 2026, with findings and recommendations for improvement expected later this year.