⦿ Executive Snapshot

• What: The FCA has initiated a review of bereavement support standards at consumer investment firms.
• Who: The review involves the Financial Conduct Authority (FCA), investment platforms, financial advisers, and wealth managers.
• Why it matters: This review aims to ensure that firms meet the expected standards under the Consumer Duty, addressing inadequate support for bereaved customers.

⦿ Key Developments

• The review covers the entire bereavement journey from the notification of death to the settlement or transfer of investments.
• Specific areas of focus include communication with bereaved customers, support for vulnerable individuals, service standards for bereaved accounts, and fee handling during bereavement.
• Previous FCA research indicated that only 47% of bereaved customers felt they received adequate support from their financial providers.
• The review is applicable to FCA-authorized firms operating in the UK consumer investments market, including investment platforms, discretionary fund managers, and financial advice firms.
• Findings from the review are expected to be published later in 2026, highlighting good practices and areas for improvement.

⦿ Strategic Context

• The review follows earlier FCA work in retail banking and insurance, which revealed inconsistent practices and avoidable delays in handling bereavement cases.
• It aligns with the FCA's Consumer Investments Regulatory Priorities, emphasizing the need for firms to focus on delivering positive customer outcomes rather than merely complying with procedures.

⦿ Strategic Implications

• The review may lead to immediate changes in how investment firms handle bereavement cases, potentially improving customer experiences and trust in financial services.
• Long-term, the findings could set new industry standards for bereavement support, influencing future regulatory frameworks and firm practices.

⦿ Risks & Constraints

• Potential risks include resistance from firms to change established procedures, which could hinder the implementation of improved support standards.
• There may also be challenges in ensuring compliance across a diverse range of investment firms with varying operational practices.

⦿ Watchlist / Forward Signals

• The FCA may start requesting information from selected firms in May 2026 as part of the evidence-gathering process.
• The upcoming publication of the FCA's findings in 2026 will signal the success or failure of the review's objectives and the industry's response to the new standards.