Comentis has launched a new vulnerability support framework for all firms regulated by the Financial Conduct Authority (FCA).

The firm’s framework addresses a range of potential vulnerabilities and will provide practical, clinically-based instructions for the process of supporting customers at risk.

According to estimates from the FCA, over 50% of the adult population is experiencing circumstances that could result in a vulnerability, at any one time. However, many firms, once they have identified a potential vulnerability, struggle with how to provide appropriate support.

With Consumer Duty rules coming into effect on 31 July, Comentis suggested that the knowledge gap must be “urgently addressed” and said the new rules could threaten potential sanctions for those failing to ensure vulnerable customers receive good outcomes.

Comentis also revealed it had developed its vulnerability support framework in direct response to this challenge. The vulnerabilities addressed, which include divorce, bereavement, dementia and low resilience, have been identified through Comentis’ online customer assessment tool as some of the most widespread.

Head of financial services, professional education at The London Institute of Banking & Finance, John Somerville, commented: “As the work to identify vulnerable customers advances, so too do the complexities involved in knowing how to advise them appropriately.

“I have worked with Comentis on various awareness-raising initiatives and their clinical expertise has helped me understand this issue in a much deeper way. This support framework will not only help advisers to develop their own understanding of the complexities of vulnerability, but will also offer practical working solutions for challenging situations.”

Co-founder and clinical director at Comentis, as well as the author of the vulnerability support framework, Tim Farmer, added: “Consumer Duty will place identifying and supporting vulnerable customers firmly at the centre of the FCA’s regulation.

“However, many firms are struggling with the support element of that process. We have therefore created this framework, bringing together best practices from a range of vulnerability specialists, to help determine those crucial next steps.

“What makes this framework so unique is that it’s very much intended as a practical tool, designed not only to educate and encourage the raising of standards, but also to provide clinically-informed, in-the-moment instruction for any professional who has identified a financial vulnerability or vulnerable circumstance. It’s also something we plan to build on, with further initiatives to ensure good outcomes for at-risk customers.”

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