How does the FCA define 'vulnerable consumers'?

The Financial Conduct Authority (FCA) defines 'vulnerable consumers' as individuals who are at a higher risk of experiencing poor outcomes because of specific circumstances or personal characteristics. This definition encompasses a wide range of factors that can affect a person's ability to manage their finances effectively, such as age, health conditions, financial literacy, and situational factors like relationship breakdowns or job loss. Recognizing vulnerability is crucial for ensuring that those consumers receive appropriate support and protection within financial services. By focusing on the context of vulnerability rather than merely economic status or engagement with financial services, the FCA emphasizes the importance of understanding each individual's unique situation and needs.