Less than half of bereaved finance customers (47%) felt they received the support they needed from firms, according to research by the Financial Conduct Authority (FCA).
The regulator is conducting a review into how consumer investment firms support bereaved customers and whether they’re getting it right as part of wider efforts to ensure firms’ responsibilities under consumer duty are being implemented. The FCA said the review is a priority under its Consumer Investments Regulatory Priorities.
The review will focus on firms that advise, manage or administer investments, including platforms, advisers and wealth managers. It will examine the experience of customers from “the moment the firm is told about a bereavement, through to settlement or transfer of investments”.
Kate Tuckley, head of department, consumer investments at the FCA, said, “When someone loses a loved one, the last thing they need is confusing letters, delays and poor service from their financial provider. We want firms to design bereavement processes with people, not paperwork, at their centre. These processes are a real test of a firm’s culture and key to consumer trust.”
From May 2026 the regulator will start contacting selected firms to review service standards and examine how fees are handled on bereaved accounts, assessing how firms communicate with and support vulnerable customers. This follows similar FCA reviews in retail banking and insurance, where it found bereaved customers regularly faced unclear processes, repeated information requests and avoidable delays. Good practice existed but it wasn’t consistent.
Welcoming the review, Winston Ruddick, senior consultant at independent financial services consultancy Broadstone, said: “The FCA’s review shines a light on an area of consumer investments and financial planning where the quality of service really matters. Bereavement is one of the clearest examples of customer vulnerability and delays, poor communication and confusing processes can add significant stress for families trying to manage a loved one’s finances at an already difficult time.
“While many firms have made improvements in recent years, it is clear that customer experiences remain inconsistent across the investment and financial planning market. The FCA is sending a clear message that bereavement processes should be built around empathy, clarity and timely support rather than administration alone.
“For firms, this is also a real test of consumer duty in practice. Those that can combine efficient administration with compassionate customer support will be far better placed to build long-term trust with clients and their families.”
The findings will be published later this year.
