Graeme Reynolds, director of competition at the FCA, delivered a speech on competition and vulnerability at the Personal Investment Management & Financial Advice Association’s (PIMFA) Wealth Vulnerability event.
The speech flagged that in the FCA’s 2022 Financial Lives survey, nearly a third of UK adults with £50,000 or more of investible assets - wealth management clients included - had at least 1 characteristic of vulnerability. However, Reynolds noted that identifying clients with characteristics of vulnerability was a challenge for the wealth sector, because a quarter of portfolio managers and half of stockbroking firms reported they have no vulnerable clients at all.
The FCA called on firms, with or without direct client engagement, to put processes in place to recognise those who may need more help, or identify those engaging with services where they may not meet their needs.