According to the FCA, what defines a vulnerable customer?

A vulnerable customer is defined as someone who is susceptible to detriment due to personal circumstances. This encompasses a wide range of situations that can affect an individual's ability to make informed decisions about financial services, leading to potential harm or disadvantage.

Such circumstances may include physical or mental health issues, lack of experience with financial products, age-related factors, or situational events like bereavement or financial crises. Recognizing these vulnerabilities is crucial for financial institutions to tailor their services and support to these customers effectively.

This definition emphasizes the importance of understanding customers not just from a financial standpoint, but also considering their personal contexts to provide appropriate assistance and ensure they are treated fairly. In contrast, other options present concepts or descriptors that do not accurately capture the essence of vulnerability in relation to customer service in the financial sector.