FCA launches review into investment firms’ support of bereaved customers

The Financial Conduct Authority (FCA) has launched a review to explore how consumer investment firms provide support to bereaved customers and assess whether they are "getting it right".

The review will focus on firms that advise, manage, or administer investments, such as platforms, advisers, and wealth managers.

According to research commissioned by the FCA, fewer than half (47 per cent) of bereaved customers felt they had received the support they needed from financial firms.

The regulator will therefore examine the experience customers have from when the firm is informed about a bereavement, through to a 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.

From this month (May 2026), the FCA will be contacting selected firms as part of the review, with its findings to be published later this year.

The findings will look to highlight good practice and areas for improvement for investment firms.

“When someone loses a loved one, the last thing they need is confusing letters, delays and poor service from their financial provider,” said FCA head of department, consumer investments, Kate Tuckley.

“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.”

Broadstone senior consultant, Winston Ruddick, added: “The FCA’s review shines a light on an area of consumer investments and financial planning where the quality of service really matters. Bereavement is one of the clearest examples of customer vulnerability and delays, poor communication and confusing processes can add significant stress for families trying to manage a loved one’s finances at an already difficult time.

“While many firms have made improvements in recent years, it is clear that customer experiences remain inconsistent across the investment and financial planning market. The FCA is sending a clear message that bereavement processes should be built around empathy, clarity and timely support rather than administration alone.

“For firms, this is also a real test of Consumer Duty in practice. Those that can combine efficient administration with compassionate customer support will be far better placed to build long-term trust with clients and their families.”

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