Make Room for Growth

PROPOSAL TO THE FINANCIAL CONDUCT AUTHORITY

SAFECHAIN™ FINANCIAL SAFEGUARDING PROTOCOL

Credit Integrity, Asset Preservation, and Affordability Governance for Victims of Domestic Abuse

Submitted by: Samantha Avril-Andreassen
Date: 17 May 2026
Reference: FCA/SG/2026/001
Status: Formal Proposal for Regulatory Rule Change & Industry Standard

1. EXECUTIVE SUMMARY

The Problem

Domestic abuse is fundamentally financial. Perpetrators systematically erode credit ratings, income streams, assets, and financial autonomy in order to enforce coercive control.

Current regulatory responses—including discretionary forbearance, temporary payment holidays, and fragmented vulnerability processes—are structurally inadequate because:

• Financial Remedy and Children Act proceedings routinely last between 1–3 years.

• Victims frequently experience interrupted employment, restricted access to finances, coerced debt accumulation, and asset instability during litigation.

• Existing relief mechanisms are routinely recorded negatively on credit files, capitalise interest, and convert temporary safeguarding crises into long-term financial exclusion.

• Adverse credit markers remain for extended periods, creating systemic barriers to housing, employment, insurance, and financial recovery.

• Current systems address missed payments as isolated financial events rather than recognising coercive control as the underlying causal mechanism.

The result is foreseeable harm including insolvency, homelessness, economic dependency, and long-term exclusion from financial participation.

This outcome is incompatible with the Financial Conduct Authority’s Consumer Duty obligations requiring firms to deliver good outcomes for vulnerable consumers and prevent foreseeable harm.

The Solution

This Protocol establishes a mandatory, system-wide safeguarding framework activated automatically upon formal verification of domestic abuse.

The framework comprises three integrated pillars:

1. Credit Integrity Protection

2. Asset Preservation & Affordability Governance

3. Liability Realignment & Enforcement Protection

The Protocol creates:

• mandatory neutral credit protection;

• regulated affordability governance;

• safeguarding-based enforcement limitations;

• litigation-period asset preservation;

• court-aligned liability implementation;

• standardised vulnerability protections across regulated firms.

The framework transforms safeguarding from discretionary guidance into an enforceable operational standard.

2. REGULATORY BASIS & COMPLIANCE ALIGNMENT

This Protocol is drafted to operate within existing statutory and regulatory powers.

It is anchored in:

• Financial Services and Markets Act 2000 (FSMA);

• Consumer Duty (PRIN 2A);

• CONC (Consumer Credit Sourcebook);

• MCOB (Mortgage Conduct of Business Rules);

• Domestic Abuse Act 2021;

• Equality Act 2010;

• Human Rights Act 1998;

• UK GDPR;

• Data Protection Act 2018;

• Support for Mortgage Interest Regulations;

• FCA Vulnerability Guidance FG21/1.

This framework defines the operational standard for preventing foreseeable harm where coercive control materially compromises affordability, financial autonomy, and credit integrity.

2A. STATUTORY AUTHORITY & REGULATORY BASIS

This Protocol operates strictly within the Financial Conduct Authority’s existing statutory powers and objectives.

The measures proposed do not:

• create new criminal offences;

• independently determine civil liability;

• extinguish secured interests;

• remove judicial authority.

The Protocol establishes mandatory conduct standards governing how regulated firms must respond where verified domestic abuse materially compromises:

• financial autonomy;

• affordability;

• repayment behaviour;

• credit integrity;

• vulnerability status.

The framework is properly characterised as:

• a Consumer Duty operational standard;

• a safeguarding-based affordability governance framework;

• a vulnerability protection mechanism;

• a conduct and reporting standard;

• a foreseeable harm prevention framework.

The FCA already possesses authority to:

• regulate consumer credit conduct;

• define vulnerability standards;

• regulate affordability assessments;

• mandate reporting standards;

• supervise systems and controls;

• require fair treatment of consumers;

• prevent foreseeable harm.

Liability allocation and beneficial ownership remain matters for competent courts.

2B. LEGITIMATE AIM & PROPORTIONALITY

This Protocol pursues the legitimate aims of:

• preventing foreseeable financial harm;

• protecting victims of coercive control and economic abuse;

• preserving housing stability;

• reducing homelessness and insolvency;

• preventing discriminatory financial exclusion;

• improving affordability accuracy;

• strengthening market integrity.

The measures proposed are proportionate because they are:

• evidence-based;

• activated only through verified safeguarding triggers;

• reviewable;

• time-limited;

• operational rather than punitive;

• designed to preserve contractual viability.

The Protocol balances the rights of regulated firms with the rights of vulnerable consumers under:

• Article 6 ECHR;

• Article 8 ECHR;

• Article 14 ECHR;

• Article 1 Protocol 1 ECHR.

3. DEFINITIONS & INTERPRETATION

Domestic Abuse

Defined in accordance with Section 1 of the Domestic Abuse Act 2021, including:

• physical abuse;

• emotional abuse;

• psychological abuse;

• sexual abuse;

• financial abuse;

• coercive and controlling behaviour.

Financial Abuse

Includes:

• restriction of employment;

• control of bank access;

• diversion of income;

• coerced debt acquisition;

• concealment of assets;

• deliberate destruction of creditworthiness;

• financial manipulation through litigation.

Victim

The individual subjected to abuse and coercive control.

This definition expressly excludes perpetrators from access to protections under this Protocol.

Trigger Event

Protection activates automatically upon presentation of any one verified document from the following closed list:

1. Police Report or Incident Number confirming domestic abuse;

2. Non-Molestation Order, Occupation Order, Protection Order, or sealed Financial Remedy application;

3. MARAC referral or outcome documentation;

4. Verification from FCA-recognised or Government-funded domestic abuse services;

5. Legal Aid Agency certificate granted on domestic abuse grounds.

No additional discretionary evidential threshold shall apply.

Protected Period

The period beginning on the Trigger Date and ending upon:

• sealing of Final Financial Remedy Order; or

• conclusion of active litigation.

The Protected Period shall be capped at 3 years unless extended by evidence of continuing active proceedings.

Protected Status

A formal regulatory safeguarding designation under this Protocol.

Accounts subject to Protected Status shall not be treated as:

• arrears;

• defaults;

• ordinary forbearance arrangements.

Protected Status is a legally recognised safeguarding classification.

3A. SYSTEMIC RATIONALE & REGULATORY CONTAMINATION PRINCIPLE

The existing financial system assumes:

• autonomous financial decision-making;

• genuine affordability;

• voluntary contractual behaviour;

• accurate credit representation.

These assumptions collapse in environments of coercive control.

Domestic abuse materially distorts:

• consent;

• repayment behaviour;

• affordability;

• financial participation;

• access to resources;

• financial autonomy.

Accordingly:

“Where coercive control materially distorts financial autonomy, conventional indicators of affordability, consent, repayment conduct, and creditworthiness cease to provide reliable regulatory indicators unless interpreted through a safeguarding framework.”

This Protocol exists to restore regulatory accuracy and prevent contaminated financial data from generating foreseeable harm.

4. PILLAR 1 — CREDIT INTEGRITY PROTECTION

4.1 THE CREDIT PROTECTION MECHANISM

Upon Trigger Event:

1. Neutral Credit Protection

All regulated lenders and Credit Reference Agencies must apply a neutral safeguarding marker preventing adverse reporting during the Protected Period.

The marker must:

• remain algorithmically neutral;

• prevent adverse scoring consequences;

• prevent automated decline mechanisms;

• prevent association with arrears or default status.

2. Reporting Restrictions

The following are prohibited during the Protected Period:

• recording missed payments as arrears;

• default registrations;

• adverse affordability markers;

• detrimental linked-address associations;

• negative behavioural scoring impacts.

3. Duration

Protection shall remain active throughout the Protected Period and for any applicable adverse reporting retention period arising directly from abuse-related financial disruption.

4. Consumer Control

Only the protected individual may request removal or amendment of safeguarding status unless otherwise ordered by a court.

4.2 DATA RECTIFICATION, SUPPRESSION & CREDIT RESTORATION

Upon conclusion of the Protected Period:

1. Regulated firms and Credit Reference Agencies must conduct a full review of adverse data arising during the Protected Period.

2. Adverse entries causally attributable to domestic abuse, coercive control, litigation-related restriction, or safeguarding-related affordability impairment shall be subject to:

• suppression;

• rectification;

• erasure,

consistent with UK GDPR accuracy and fairness principles.

3. Data processing must comply with:

• fairness;

• accuracy;

• proportionality;

• safeguarding necessity.

4. The protected individual shall receive written confirmation that their file has been reviewed and corrected under this Protocol.

5. PILLAR 2 — ASSET PRESERVATION & AFFORDABILITY GOVERNANCE

5.1 PROTECTED LITIGATION STATUS

Upon Trigger Event, all regulated credit facilities shall enter Protected Status.

This includes:

• mortgages;

• secured loans;

• unsecured loans;

• overdrafts;

• credit cards.

Mandatory Protections

1. Principal Repayment Pause

Principal repayments may be paused during the Protected Period.

2. Interest Suspension

Interest accrual, compounding, penalties, and default charges may be frozen during the Protected Period where affordability impairment is established.

3. Enforcement Restriction

Firms are prohibited from initiating:

• repossession;

• default enforcement;

• accelerated recovery action,

unless a court determines enforcement remains necessary and proportionate.

4. Capitalisation Restriction

Frozen interest and paused amounts must not automatically capitalise into principal balances without judicial approval or express consumer consent following conclusion of proceedings.

5.1A INSOLVENCY & SECURITY POSITION

Protected Status does not extinguish underlying security interests unless otherwise ordered by a competent court.

The Protocol regulates:

• enforcement conduct;

• affordability governance;

• reporting obligations;

• safeguarding obligations.

Courts retain ultimate authority regarding:

• enforcement;

• liability allocation;

• beneficial ownership;

• security interests.

Regulated firms must demonstrate that safeguarding obligations and affordability protections were properly exhausted prior to enforcement action.

Failure to do so may constitute evidence of foreseeable harm and breach of Consumer Duty obligations.

5.2 MANDATORY AFFORDABILITY GOVERNANCE FORMULA

Principle

Ability to pay must reflect actual disposable income available during coercive-control disruption.

Historical joint income assumptions shall not apply.

STEP 1 — VERIFIED NET INCOME

• Net earnings

• Benefits / Universal Credit

• Support for Mortgage Interest

• Maintenance actually received

LESS STEP 2 — ESSENTIAL EXPENDITURE

• Housing costs

• Utilities

• Council Tax

• Food and household costs

• Essential transport

• Childcare and care costs

• Pre-abuse liabilities

RESULT

= Available Disposable Income

APPLICATION

If Available Disposable Income ≤ £0

Required payment = £0

If Available Disposable Income > £0

Maximum payment = 25% of Available Disposable Income.

5.2A AFFORDABILITY GOVERNANCE PRINCIPLE

The affordability threshold exists to:

• preserve minimum living standards;

• reduce homelessness risk;

• prevent insolvency escalation;

• maintain housing sustainability;

• preserve long-term repayment viability;

• reduce reliance upon emergency state intervention.

The framework prioritises safeguarding stability over short-term recovery optimisation where coercive control materially impairs financial autonomy.

VERIFICATION & REVIEW

Verification shall operate on a trauma-informed and proportionate basis.

Firms may request clarification only where objectively reasonable evidence of material misrepresentation exists.

Verification must not become:

• intrusive surveillance;

• disproportionate scrutiny;

• safeguarding obstruction.

6. PILLAR 3 — LIABILITY REALIGNMENT & ENFORCEMENT PROTECTION

6.1 ADMINISTRATIVE ACCOUNT SEPARATION

Upon activation of Protected Status:

• the protected individual’s liability shall be safeguarded under this Protocol;

• firms may continue lawful enforcement activity against non-protected parties.

6.2 COURT-ALIGNED LIABILITY REALIGNMENT

Where a competent court determines that liability properly rests with another party due to:

• coercive control;

• concealment;

• abuse;

• dissipation;

• litigation misconduct,

regulated firms must operationally align account liability and reporting practices with that determination.

Upon receipt of a sealed Court Order:

• enforcement against the protected individual must cease to the extent ordered;

• credit reporting records must be corrected;

• liability records must be amended accordingly.

This Protocol does not independently determine civil liability.

6A. EVIDENTIAL RELIABILITY PRINCIPLE

Domestic abuse is significantly underreported and frequently does not result in criminal conviction.

Accordingly, safeguarding protections under this Protocol operate on a safeguarding evidential standard rather than a criminal burden of proof.

Absence of prosecution or conviction shall not invalidate protections where verified institutional or judicial evidence exists.

The purpose of the Protocol is prevention of foreseeable harm.

7. PROHIBITED PRACTICES

Regulated firms are prohibited from:

• adverse reporting inconsistent with Protected Status;

• automatic default classification;

• coercive catch-up demands;

• punitive product restructuring;

• discriminatory treatment arising from safeguarding status;

• refusal of protection where valid Trigger Evidence is supplied;

• automated repossession escalation without safeguarding review.

8. RISK ASSESSMENT & MITIGATION

Objection: “This is too costly.”

Response

The current system already generates:

• insolvency losses;

• homelessness costs;

• enforcement expenditure;

• Ombudsman litigation;

• prolonged recovery failures.

This Protocol improves repayment sustainability while reducing long-term systemic loss.

Objection: “This interferes with creditor rights.”

Response

The Protocol does not extinguish creditor rights or security interests.

It regulates conduct during verified safeguarding periods in order to prevent foreseeable harm and ensure compliance with Consumer Duty obligations.

Measures remain:

• proportionate;

• reviewable;

• evidence-based;

• time-limited.

Courts retain ultimate authority regarding enforcement and liability allocation.

Objection: “The framework may be abused.”

Response

Protection activates only upon verified institutional triggers.

Fraudulent applications remain subject to the Fraud Act 2006 and existing criminal sanctions.

Objection: “Credit data cannot be retrospectively altered.”

Response

UK GDPR requires personal data to remain accurate, fair, and proportionate.

Financial data generated through coercion, abuse, or materially distorted autonomy may produce inaccurate representations of genuine creditworthiness.

This Protocol operationalises rectification and fairness obligations within regulated credit systems.

9. IMPLEMENTATION FRAMEWORK

Phase 1 — Regulatory Amendment

Amend CONC and MCOB provisions to incorporate mandatory safeguarding protections under this Protocol.

Phase 2 — Industry Guidance

Issue FCA Policy Statement and Guidance Note establishing implementation requirements and timelines.

Phase 3 — System Integration

Mandate regulated firms and Credit Reference Agencies to implement:

• safeguarding markers;

• affordability governance calculations;

• automated Trigger recognition;

• neutral reporting architecture.

Phase 4 — Training & Governance

Implement mandatory safeguarding training standards including:

• coercive control recognition;

• trauma-informed affordability assessment;

• MØPIT™ safeguarding principles;

• vulnerability governance.

Phase 5 — Consumer Duty Alignment

Align implementation with future Consumer Duty review cycles and supervisory assessment frameworks.

9A. REGULATORY OUTCOMES & PUBLIC INTEREST BENEFITS

Implementation of this Protocol is expected to:

• reduce homelessness linked to domestic abuse;

• reduce insolvency rates among vulnerable consumers;

• improve repayment sustainability;

• reduce enforcement costs;

• reduce Ombudsman complaints;

• improve credit reporting integrity;

• improve affordability accuracy;

• strengthen Consumer Duty compliance outcomes;

• preserve economic participation;

• reduce structural poverty caused by coercive abuse.

10. CONCLUSION

This Protocol establishes a mandatory safeguarding framework ensuring that victims of verified domestic abuse are not subjected to continued financial harm through contaminated affordability assessments, distorted credit reporting, or disproportionate enforcement practices.

The framework is:

• legally grounded;

• operationally implementable;

• proportionate;

• economically viable;

• compatible with existing regulatory powers;

• aligned with Consumer Duty obligations.

The Protocol transforms safeguarding from discretionary guidance into an enforceable operational standard across regulated financial systems.

Submitted respectfully for consideration by the Financial Conduct Authority Policy Division, Consumer Panel, and Regulatory Strategy Directorate.

© 2026 Samantha Avril-Andreassen. All rights reserved. SAFECHAIN™ is a conceptual safeguarding infrastructure and policy framework authored by Samantha Avril-Andreassen. Reproduction or implementation of this framework without permission is prohibited.
Version 1.0 – FCA Safeguarding Protocol Draft.