The FCA has called on financial advisers and financial professionals to educate themselves and staff on the signs of financial abuse.

The regulator is currently exploring what can be done to support victim-survivors of financial abuse.

Looking through the lens of Consumer Duty, it has called on firms to be alert to the possibility of coercion and financial control to reduce foreseeable harm.

It has called on the firms it regulates to include staff training to recognise the signs, refer victims to specialist support and use tools that can help consumers regain control.

Joanne Legg, head of consumer policy and outcomes at the FCA, said in a message to the industry published on the FCA website: “Victim-survivors of such abuse are more likely to reach out to family, friends or their bank for help as a first step, before they consider reporting to the police. This means the financial services sector has a vital role to play in spotting the signs and offering support where they suspect financial abuse is happening.

“Financial abuse can involve the manipulation of financial products and services. It can include loans taken out in the victim-survivor’s name, bank account takeover or the use of joint life insurance policies as a threat.

“Under our consumer protection objective, the FCA has a role in securing an appropriate degree of protection for consumers of financial services. We understand that experiencing abuse can leave those affected in vulnerable circumstances, impact their experiences of financial services, and potentially put their financial future at risk.”

The FCA said when a report of abuse is made to an adviser, firms should treat the victim-survivor as a vulnerable customer so they do not experience further avoidable harm.

It is currently working with Financial Ombudsman Service, government, domestic abuse charities and trade associations, to understand how firms are identifying and managing harm for victim survivors of domestic financial abuse.

The regulator first wrote to lenders about domestic abuse in March.

In November the CII announced that it was to boost support for victim-survivors of financial abuse.

The CII will work with members to produce good practice guidance for professionals, using the case studies and recommendations for practitioners in a recent report from the Surviving Economic Abuse group as a starting point.

The CII has commended the report and has agreed to develop its own guidance based on its recommendations.

Dr Matthew Connell, director of policy and public affairs at the CII, said financial professionals needed to place a high priority on the mistreatment of vulnerable people.