About the Financial Vulnerability Taskforce
Launched in October 2021, The Financial Vulnerability Taskforce (FVT) is an independent representative body covering the personal finance sector. Its ultimate purpose is to promote greater understanding, encourage appropriate behaviours and establish good practice in respect of consumer vulnerability.
It quickly attracted over 1,000 firms and circa 4,000 users of its Financial Vulnerability Charter.
In July 2022, the Financial Conduct Authority (FCA) published its final rules and guidance for a new Consumer Duty (PS 22/9 and FG 22/5).
The FVT Board recognised that the financial services sector would now consider vulnerability within the wider context of Consumer Duty, so the FVT should do the same. Consequently, the Consumer Duty Alliance was created as an overarching body within which the FVT sits.
The Alliance launched on 9 March 2023 as an independent, not-for-profit community interest company aiming to promote the benefits of the FCA’s Consumer Duty and support financial advisers/planners and other professions in its successful implementation.
The ongoing role of the FVT
The FVT remains as a brand and separate entity within the Alliance, to promote greater understanding of vulnerability and help firms develop appropriate knowledge, behaviours and good practice when dealing with clients in vulnerable circumstances.
It will continue to support high professional standards within the financial planning sector by maintaining and promoting its branded Charter, and publishing more Consumer Guides and Good Practice Guides linked to life events that can lead to consumer vulnerability, for example divorce and bereavement.
An advisory FVT Board will provide an ongoing focus on vulnerability and help to inform and provide vulnerability guidance to the Alliance Board.
How the Taskforce can support you
The Financial Vulnerability Taskforce seeks to support the personal fince sector by:
- Providing strategic leadership across the sector in respect of professional dealings with clients and prospective clients in vulnerable circumstances, helping to promote the concept of a ‘safe pair of hands’ in terms of attitude, approach, business processes and outcomes.
- Create a programme of work by soliciting the support of subject matter experts to help create a bank of relevant educational material and ‘opinion pieces’ (held within Guides and Resources).
- Engage constructively with others including regulators and relevant Parliamentary Groups to influence change.
You and your firm can use the Charter to augment the work you're doing to support clients in vulnerable circumstances by supporting the 9 statements of the Taskforce’s Charter. You’ll receive a unique badge and Consumer Guide to help promote your support.