What makes customers vulnerable?
Customers may become vulnerable at different stages of their lives for different reasons. Factors that can lead to vulnerability include:
- Physical or Mental Health Challenges – Conditions, situations, or disabilities that hinder the ability to handle everyday activities.
- Significant Life Changes – Events such as losing a job, the death of a loved one, or a breakup that disrupt stability.
- Coping Ability – A reduced capacity to manage emotional or financial challenges.
- Skills and Knowledge – Limited financial knowledge, lack of confidence in handling money, or difficulties with essential skills like reading or using digital tools
What is a vulnerable customer?
A vulnerable customer is an individual whose personal circumstances may negatively affect their ability to make decisions or interact effectively with financial services. As a result, they are at a higher risk of facing adverse outcomes, which, if they occur, are likely to have a more significant impact compared to other customers.
You can also refer to our Customer Wellbeing section for additional concerns you may have on potential vulnerability.
If you believe you may be at risk of vulnerability, please contact us on support@capitalindex.com to discuss your situation accordingly.
Which factors may contribute to customer vulnerability?
A variety of factors can increase a customer’s vulnerability, potentially affecting their ability to make informed and rational investment decisions. These factors may include:
1. Personal Circumstances
Unexpected or challenging life events can lead to impulsive or emotionally driven financial decisions. Examples include:
- Experiencing significant personal or financial hardship.
- Dealing with addiction-related issues, such as gambling or compulsive behaviors.
- Facing health challenges or disabilities.
- Encountering unexpected disruptions, such as job loss or bereavement.
2. Mental Health Conditions
Mental health challenges can significantly affect judgment and decision-making. Conditions such as depression, anxiety, or overwhelming stress may impair the ability to assess risks or make well-considered investment choices.
Recognizing and addressing these factors is crucial in protecting customers from potential financial harm.
If you believe you may be in a vulnerable position, please reach out to us at support@capitalindex.com. We’re here to help and can discuss ways to support you during this time.
How can I ascertain whether I am financially vulnerable or not?
To ascertain whether you are financially vulnerable, you can ask yourself the following questions:
- Am I endangering my or my family’s financial future to finance trades?
- Am I using funds from multiple personal accounts to back single trades?
- Am I opening increasingly substantial trades to make up for past losses? Am I neglecting other financial responsibilities, like paying for household essentials, to finance trades?
- Am I getting into debt to finance trades?
- Am I anxious that I might not financially recover unless I secure a winning trade?
- Am I concealing my trading behaviour from household members?
If you have answered positively to any of the above questions, please reach out to us at support@capitalindex.com.
How can I ascertain whether I am physically vulnerable or not?
To ascertain whether you are physically vulnerable, you can ask yourself the following questions:
- Am I neglecting usual self-care routines like exercising, enjoying nature, or resting to monitor my trades?
- Am I having trouble sleeping because I’m anxious about trades going against me?
- Am I using substances or medications to cope with the emotional strain of trading?
- Am I compulsively eating or forgetting to eat to deal with the emotional stress of trading?
If you have answered positively to any of the above questions, please reach out to us at support@capitalindex.com.
How can I ascertain whether I am emotionally vulnerable or not?
To ascertain whether you are physically vulnerable, you can ask yourself the following questions:
- Am I foregoing time with friends and family to monitor trades?
- Am I distracted by thoughts of trading while spending time with friends and family?
- Do I engage in negative self-talk when a trade doesn’t go in my favour?
- Do I associate my self-esteem with my trading results?
- Do I believe that a single winning trade can solve most of my life’s problems?
- Am I having suicidal thoughts when trades don’t go in my favour?
If you have answered positively to any of the above questions, please reach out to us at support@capitalindex.com.
What measures does Capital Index UK take to protect vulnerable customers and manage harmful trading behaviours?
Capital Index UK does not monitor overall trading activities or results. Capital Index UK adopts a proactive approach to identify harmful trading behaviours that may escalate and indicate vulnerability.
If our system detects any harmful trading behaviours that may suggest that a costumer might be in a vulnerable state, a relevant notification will be issued. Upon notification, a representative will contact you to discuss your personal circumstances and may recommend a temporary or permanent suspension of your account.”
If you have declared your vulnerability, you may request either a temporary or permanent suspension of your account. For temporary suspensions, you can ask for your account to be reactivated once the suspension period has ended.
Are there any resources available if I am struggling with mental health, gambling issues, or debt management?
- Institutions like MIND and the Samaritans offer Mental Health support. Alternatively, you should consult with your physician or a mental health professional.
- If you’re finding it difficult to control the urge to trade, it’s important to seek professional help. Organisations like Gordon Moody and GamCare are ready to assist you in restoring balance and provide Gambling Support.
- Finally, Step Change offers guidance on managing Debt and supports you in developing healthier financial habits.
