Vulnerable Customers
Definition
Customers who, due to their personal circumstances, are especially susceptible to harm, particularly when a firm is not acting with appropriate levels of care. Vulnerability can arise from health conditions, life events, low resilience, or low capability, and may be temporary or permanent.
Regulatory Context
The FCA's guidance on the fair treatment of vulnerable customers (FG21/1) sets expectations for firms to understand customer vulnerability, ensure products meet their needs, and provide flexible customer service. The Consumer Duty further reinforces these expectations.