Posted on by Sheena Gillett

25th October 2024

PIMFA welcomes 600 professionals at launch of customer vulnerability guide 

PIMFA, the trade association for wealth management, investment services and the financial advice and planning industry, welcomed over 600 professionals to a dedicated event on Customer Vulnerability yesterday (24th October) run with support from the Financial Conduct Authority (FCA).

The event began with welcome remarks from Paul Geddes, Group CEO of Evelyn Partners and was followed by a keynote speech from Graeme Reynolds, FCA’s Director for Consumers and Competition, who welcomed the industry’s coming together to address the issue of customer vulnerability.

Notably, the FCA recognised in their speech that addressing vulnerability within the wealth sector had improved since the FCA 2022 Wealth Data Survey and that there is no set quantitative goal or target on how many vulnerable customers a firm should be identifying.

However, whilst the FCA has seen positive initiatives in their supervisory and broader policy review work, there were still some areas of concern, and more could be done.

Mr Reynolds stressed that firms must maintain their focus on vulnerability as a critical aspect of securing their clients’ financial futures.

In this regard, the FCA made a call to action, asking firms to consider vulnerability proactively and clearly setting out what they expect of firms:

  • ensure the proper processes are in place to identify those who may need more help
  • ensure clients are supported in achieving their goals throughout the customer journey
  • ensure communications are clear and easily understood
  • evolve well-trained, empathetic client service that appreciates vulnerabilities aren’t fixed and that circumstances change
  • use data to test whether clients are receiving good outcomes

Nick Hulme, FCA’s Head of Department for Advisers, Wealth and Pensions, added: “Vulnerability spans all four of the Consumer Duty outcomes so getting it right is fundamental for wealth firms and advisers in ensuring their customers ultimately get a good outcome.”

Alexandra Roberts, Head of Regulatory Policy and Compliance, PIMFA, followed this with a presentation to launch and outline the new 160-page guide produced by PIMFA to assist firms in their work on customer vulnerability, available to download on the PIMFA website.

A ‘view from the top’ panel discussion followed next, led by PIMFA’s Chief Executive Liz Field, featuring Stuart Dodson, Managing Director at The Openwork Partnership, Richard Flynn, Managing Director at Charles Schwab and Sarah Owen-Jones, Chief Risk Officer at Rathbones. The panel shared insights into how firms are setting the culture and tone with regard to customer vulnerability and how they are driving changes through their organisations.

A second-panel discussion followed to hear the perspectives of practitioners, which included Tracy Coghill, Risk and Compliance Officer, City Asset Management; Trisha Horncastle, Compliance Technical Manager, abrdn; David Mulholland, Business Development Manager; Brooks MacDonald, and Zoe Morton, Director at RSM. The panel explored a range of specific challenges and opportunities for firms, as well as examples of good practices seen in the industry.

PIMFA’s Chief Executive, Liz Field, closed the event, who said: “The fact that so many of you have gathered here today illustrates how seriously our profession is taking the important issue of customer vulnerability.

Our industry has made great strides, and putting customers at the centre of all we do is a leading principle for all of us; however, as ever, there is more we can be doing, and the guide we have launched today provides the practical support for firms looking to do just that”.

“I’d like to thank the FCA for their support, our attendees and speakers, our hosts RSM, and all the contributors to this guide from across our membership, and other external stakeholders and groups for making today possible”.

<ENDS>

 

NOTES TO EDITORS

About PIMFA – the Personal Investment Management & Financial Advice Association

  • PIMFA is the trade association for firms that provide wealth management, investment services and the investment and financial advice to everyone from individuals and families to charities, pension funds, trusts and companies.
  • The sector currently looks after £1.65 trillion in private savings and investments and employs over 63,000 people.
  • PIMFA represents both full and associate member firms. Full members provide a range of financial solutions including financial advice, portfolio management, as well as investment and execution services. They assist everyone from individuals and families to charities and pension funds, all the way to trusts and companies.  Associate members provide professional services to the PIMFA community.
  • PIMFA leads the debate on policy and regulatory recommendations to ensure that the UK remains a global centre of excellence in the wealth management, investment advice and financial planning arena. Our mission is to create an optimal operating environment so that its member firms can focus on delivering the best service to clients, providing responsible stewardship for their long-term savings and investments.
  • PIMFA was created in 2017 as the outcome of a merger between the Association of Professional Financial Advisers (APFA) and the Wealth Management Association (WMA) with a history as a trade association since 1991 – read more.
  • Further information can be found at pimfa.co.uk

Contact

For further information on this release or other press matters please contact:

Sheena Gillett, PIMFA Communications & PR Director – sheenag@pimfa.co.uk,
+44 (0)20 7011 9869 / +44 (0)7979 493225.