FCA Launches Review Into Poor Service for Bereaved Clients — What Later-Life Homeowners Should Know

What the FCA's review covers

In May 2026, the FCA announced a formal review into how consumer investment firms handle the deaths of customers and support the people left behind. The review focuses on a number of areas: how quickly and clearly firms communicate with bereaved family members, how they handle joint accounts and shared financial products, what fee arrangements remain in place during estate administration, and whether firms are meeting their Consumer Duty obligations to vulnerable clients.

The findings are stark. Only 47% of bereaved customers felt they received adequate support from their financial providers. That means more than half of people dealing with the death of a spouse or partner — already an enormously difficult time — also found themselves poorly served by the institutions holding their money or their financial products.

The FCA began contacting selected firms from May 2026. Findings are expected to be published later in the year, with the expectation that firms will improve standards or face regulatory action.

Why this matters for older homeowners with equity release

Verity Home's clients are typically aged 55 and over, and many are couples. Lifetime mortgages and joint equity release plans are held in both partners' names. When one partner passes away, the surviving partner faces a series of important questions — often while grieving, often without full knowledge of the financial arrangements their partner managed.

Common situations that arise for bereaved homeowners include:

• A joint lifetime mortgage where the surviving partner needs to understand what happens next — whether the plan continues, whether rates change, and what their obligations are.
• A sole-name equity release plan where the surviving partner needs to understand how the property and the loan relate to probate and estate administration.
• Situations where the deceased partner handled all financial matters and the survivor is encountering the equity release product for the first time.
• Cases where property ownership needs to be reassessed following a death — particularly where the home may now be too large, or where care costs become a consideration.

These are not uncommon situations. They require clarity, patience, and a firm that understands both the technical aspects of equity release and the human dimension of bereavement.

The FCA's Consumer Duty framework

The FCA's Consumer Duty, which came into full effect in 2023, sets a higher standard of care for firms dealing with retail customers — and specifically requires firms to consider the needs of vulnerable customers. Bereavement is explicitly recognised as a circumstance that can create vulnerability, even temporarily.

This means that FCA-regulated firms — including equity release advisers and lenders — are required to ensure that bereaved customers are treated with appropriate care. Repeated requests for the same documentation, long delays in transferring accounts, poor communication, and unhelpful processes all fall below the standard the FCA expects.

The review follows similar action taken in retail banking and insurance, where bereaved customers were found to be facing avoidable delays and distress. The FCA is now extending that scrutiny to investment and lending firms.

What to do if you've recently been bereaved and have equity release

If you have recently lost a partner and have a lifetime mortgage or equity release arrangement, the most important thing is to get clear, FCA-regulated advice as soon as you feel ready. You do not need to make decisions immediately, but understanding your position will help you plan.

Key questions to address with an adviser include:

• Is the plan in joint names or sole name, and what changes when one holder passes away?
• Does the plan need to be repaid, or can the surviving partner continue living in the property under the existing terms?
• Are there any conditions attached to the plan that affect what happens next?
• Do you need to notify the lender, and if so, what documentation will they require?

Verity Home's advisers are trained to handle these sensitive situations with care and clarity, within a Consumer Duty framework. We understand that bereavement is not just a financial event — it's a deeply personal one — and we work at your pace, not ours.