MARS is aimed at providing a simple way to assess, understand, rate and track characteristics that contribute to the vulnerability of individuals.
As businesses prepare for Consumer Duty, the system and its ‘Resilience Rating’ have been updated, with tailored questions allowing firms to assess how vulnerable each client is to the potential risk of coercion or susceptibility to scams.
Consumer Duty now requires all firms to report on protected characteristics, reinforcing the Equalities Act. In its announcement in July, the Financial Conduct Authority (FCA) noted that the duty would “include requirements for firms to focus on the real and diverse needs of their customers, including those in vulnerable circumstances, at every stage and in each interaction”.
Andrew Gething (pictured), managing director of MorganAsh, said: “We are really pleased to introduce yet more valuable upgrades for MARS, our comprehensive vulnerability tool. The updates draw on both user feedback and the FCA’s final guidelines for Consumer Duty, giving firms a reliable system to not only meet the demands of regulators, but best protect the vulnerabilities of their customers.
“Coercion of vulnerable people is of increasing concern, especially as scams become more sophisticated and more frequent. These updates to MARS enable firms to manage and monitor that vulnerability risk, all while showing a clear and consistent compliance approach with the ‘Resilience Rating’ – much like a credit score.”
He continued: “As with the entire MARS system, we plan to develop this further over time to best meet the needs of mortgage firms and their clients to help ensure they can always comply with Consumer Duty.”
At the recent British Mortgage and Protection Senate, Mortgage Solutions reported that regulated firms have until October to demonstrate how they will implement Consumer Duty plans.
