The FCA is to look at how firms that advise on investments are doing enough to support bereaved customers in a new review.
The regulator is taking a closer look at bereavement processes following research for its Vulnerability Review which found that fewer than half (47%) of bereaved customers felt they received the support they needed from financial firms.
The review will focus on firms that advise, manage, or administer investments, including platforms, advisers and wealth managers.
The FCA will examine the experience customers have from the moment the firm is told about a bereavement, through to settlement or transfer of investments.
It will assess how firms communicate, how they support vulnerable customers, their service standards, and how fees are handled on bereaved accounts.
The review follows similar FCA reviews in retail banking and insurance, where it found bereaved customers regularly faced unclear processes, repeated information requests and avoidable delays.
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.”
The regulator expects to contact selected firms for the review this month.
It will publish its findings later this year.
Bereavement processes have seen a number of scandals highlighted in the press in recent years.
In March NS&I CEO Dax Harkins has resigned after a wave of complaints about how the savings body treated the families of deceased customers.
NS&I has been hit with a string of complaints from the families of deceased customers about long and frustrating delays related to returning funds to beneficiaries.
The Daily Telegraph has reported on numerous complaints with some families waiting months or years for the return of money.
An initial review by NS&I of 34m customer records suggests up to £470m in deposits held by 37,500 customers could be affected.