The Financial Conduct Authority (FCA) has called on banks and building societies to improve their policies around power of attorney cases.

It comes as the regulator found that firms could "improve how they treat customers" affected by bereavement.

As a result, the FCA has published guidance on good and poor practices to help firms provide the right support around these cases.

The regulator said that since the introduction of the Consumer Duty, some banks and societies are making a "real difference with clear policies and procedures" and are "actively using data to better identify needs".

However, some firms are unclear on the actions they need to take, which has led to some individuals and their representatives being unable to access funds to pay essential bills.

The FCA added that there were examples of customers who struggled to get support during an emergency, such as a mental health crisis.

It follows FCA guidance published in 2021 to help financial services firms support consumers in vulnerable circumstances.

The review has also fed into the regulator’s work on how financial services firms are treating vulnerable customers.

Director of retail banking at the FCA, Emad Aladhal, said: "Dealing with a bereavement or setting up a power of attorney can often be stressful and emotional. When banks and building societies get it right for their customers they can make a real difference at a difficult time. But when they fail to recognise and respond to customers who need more help, it adds to the stress. All firms should consider where they can make improvements.

"Our message to consumers is this - if you need to notify your banking provider about a bereavement or a power of attorney, speak to them about how they can support you and meet your needs."

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