The Financial Conduct Authority’s (FCA) review into how consumer investment firms support bereaved customers and whether they’re getting it right has been welcomed by a provider of bereavement services.
The Estate Registry, which operates the NotifyNOW and InhieritNow brands, said efforts to “place empathy and customer needs at the centre of their bereavement processes” are to be applauded, with too many institutions not providing the “kind of service grieving families are entitled to expect”.
The FCA’s review will focus on firms that advise on, manage or administer investments, including investment platforms, financial advisers and wealth management firms. The FCA said it aims to better understand whether bereaved customers are being treated fairly and compassionately throughout the process of settling or transferring investments after the death of a loved one.
“Far too many people still have to make multiple phone calls, repeat information and receive confusing and potentially misleading advice about transferring investments and also experience lengthy delays,” said The Estate Registry CEO Howard Enders.
“Each company will have its own jargon and processes and it’s important to remember how distressing and onerous this can be for those dealing with a loss. Investment firms and advisers are being encouraged to review their systems and ensure they are fit for purpose as a matter of urgency, and we fully support that move.”
A previous review in retail banking and insurance found examples of effective and compassionate support, but standards varied widely across the industry. As part of its new review, the FCA will assess the customer journey from the moment a firm is informed about a death through to the final resolution of the account.
Areas of focus will include the clarity and tone of communications, the treatment of vulnerable customers, service response times, and the handling of fees on accounts belonging to deceased customers.
Enders added: “The regulator wants firms to place empathy and customer needs at the centre of their bereavement processes, which is to be applauded. When someone loses a family member, they should receive professional service. The last thing they need is having to repeat information and to experience delays at a time when they are distressed. We would like to see investment firms design bereavement processes with people, not paperwork, as their focus.”
In its terms of reference, the FCA said firms would be required to evidence their bereavement processes are “consistently applied, clearly communicated and genuinely work in the interests of bereaved customers”.
The Estate Registry has consistently argued that bereavement processes are often overlooked despite affecting thousands of families each year.
Enders concluded: “Clearer communication, reduced bureaucracy, and more compassionate handling could significantly ease stress for grieving customers. For many families navigating financial matters after a loss, the FCA’s review could represent an important step toward fairer, more compassionate treatment during one of life’s most challenging moments.
