Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps his Department is taking to help tackle age discrimination experienced by customers in their dealings with the financial services industry.

The Government is strongly committed to tackling financial exclusion and discrimination and aims for everyone, whatever their background, age or income to be able to access useful and affordable financial products and services. The Government works closely with regulators and stakeholders from the public, private and third sectors to ensure that all consumers of financial services are appropriately protected.

The Financial Services Act 2021 requires the Financial Conduct Authority (FCA) to consult on whether it should make rules providing that authorised persons owe a duty of care to consumers.

The FCA published an initial consultation on 14 May 2021 proposing a new ‘Consumer Duty’, which seeks to clarify and raise expectations for the standard of care that should be provided by financial services firms to consumers. A subsequent consultation was published on 7 December 2021 and is currently ongoing.

Prior to this, in February 2021, the FCA also published its finalised guidance for firms on the fair treatment of vulnerable customers, setting out a number of best practices (https://www.fca.org.uk/publications/finalised-guidance/guidance-firms-fair-treatment-vulnerable-customers). This applies to all firms where the FCA Principles for Business apply, regardless of sector and in respect of the supply of products or services to retail customers.

UK banks’ and building societies’ treatment of their customers is governed by the FCA in its Principles for Businesses. This includes a general requirement for firms to provide a prompt, efficient and fair service to all of their customers. The FCA’s Handbook requires firms to identify customers who exhibit characteristics of vulnerability, and to deal with such customers appropriately. This includes older people, the disabled, and those who may lack the capacity to manage their account on their own.

In addition, like all service providers, banks and building societies are bound under the Equality Act 2010 to make reasonable adjustments, where necessary, in the way they deliver their services.