“People not paperwork” should be key focus, as regulator examines how investment firms handle bereavement cases amid concerns over delays, poor communication, and inconsistent support
The Estate Registry (TER), a leading UK provider of bereavement services, including NotifyNOW and InheritNOW, has welcomed the announcement that the Financial Conduct Authority (FCA) is to review how consumer investment firms support customers dealing with bereavement.
It follows growing concern that many people don’t receive the care and guidance they need during one of the most difficult periods of their lives.
The review will focus on firms that advise on, manage, or administer investments, including investment platforms, financial advisers, and wealth management firms. The FCA said it aims to better understand whether bereaved customers are being treated fairly and compassionately throughout the process of settling or transferring investments after the death of a loved one.
The move comes after research revealed that fewer than half of bereaved customers – just 47% – felt financial firms provided the support they needed after experiencing a loss. The findings have raised questions about whether current industry practices meet consumer expectations and regulatory standards.
Howard Enders, Chief Operating Officer at The Estate Registry says:
“Too many financial institutions, unfortunately, do not provide the kind of service grieving families are entitled to expect.
“And far too many people still have to make multiple phone calls, repeat information and receive confusing and potentially misleading advice about transferring investments and also experience lengthy delays. Each company will have its own jargon and processes and it’s important to remember how distressing and onerous this can be for those dealing with a loss.
“Investment firms and advisers are being encouraged to review their systems and ensure they are fit for purpose as a matter of urgency, and we fully support that move.”
Under the review, the FCA will assess the customer journey from the moment a firm is informed about a death through to the final resolution of the account. Areas of focus will include the clarity and tone of communications, the treatment of vulnerable customers, service response times, and the handling of fees on accounts belonging to deceased customers.
Enders continues:
“The regulator wants firms to place empathy and customer needs at the centre of their bereavement processes, which is to be applauded.
“When someone loses a family member, they should receive professional service. The last thing they need is having to repeat information and to experience delays at a time when they are distressed,” said Enders. “We would like to see investment firms design bereavement processes with people, not paperwork, as their focus.”
TER noted that firms will be required to evidence that their bereavement processes are “consistently applied, clearly communicated and genuinely work in the interests of bereaved customers”.
The regulator said its review is intended to identify where firms are performing well, where improvements are needed, and what examples of good practice can be shared across the sector.
This latest initiative builds on previous FCA work examining bereavement support in retail banking and insurance. Earlier reviews uncovered recurring issues including unclear procedures, repeated requests for the same documents or information, lengthy delays in account closures or transfers, and inconsistent levels of customer service.
While examples of effective and compassionate support were identified in some firms, the FCA concluded that standards varied widely across the industry. The regulator believes similar challenges may exist within the investment sector and is now seeking to determine whether firms are complying with their obligations under the Consumer Duty framework.
The Consumer Duty, introduced to improve standards of care across financial services, requires firms to deliver good outcomes for retail customers and place consumer interests at the heart of their operations. The FCA said bereavement handling represents an important test of whether firms are meeting those expectations in practice.
Industry observers say the review could lead to significant operational changes for investment providers, particularly around communication standards, staff training, and the simplification of administrative processes. Firms may also face increased scrutiny over how quickly cases are resolved and whether charges continue to accrue unnecessarily during probate or account administration.
From May 2026, the FCA will begin contacting selected firms as part of the review process. The regulator said it will engage directly with firms to gather information on their policies, procedures, and customer outcomes.
Findings from the review are expected to be published later this year. The FCA has indicated that the results could inform future supervisory activity and broader regulatory expectations for customer support across financial services.
The Estate Registry has consistently argued that bereavement processes are often overlooked despite affecting thousands of families each year.
Enders says:
“Clearer communication, reduced bureaucracy, and more compassionate handling could significantly ease stress for grieving customers.”
The FCA said the review forms part of its wider Consumer Investments Regulatory Priorities and broader efforts to strengthen trust and accountability within financial services.
Enders concludes: “For many families navigating financial matters after a loss, the FCA’s review could represent an important step toward fairer, more compassionate treatment during one of life’s most challenging moments.