This deadline applies to all firms who failed to make satisfactory progress in the FSAs ‘Treating Customers Fairly – Towards Fair Outcomes for Consumers’ progress report.
The findings of the study revealed TCF had so far failed to reach the frontline of firms activities, despite it being implemented at senior management level. The research also revealed a number of firms were lagging behind the targets set by the regulator and found an ‘unacceptable number of firms’ had failed to give adequate advice to consumers about why a particular financial product was recommended to them.
Clive Briault, managing director of retail markets at the FSA, admitted many firms had made progress with TCF. However, he said: “Many firms now need to step up a gear, in particular to make the cultural and behavioural changes necessary so that ‘Treating Customers Fairly’ is fully embedded throughout their whole business.”
He added: “We have set a deadline for the slowest firms to catch up with the majority, and we have outlined the core consumer outcomes we want to see. By next year, we expect to see a measurable change for consumers, and this will be a good result for all.”
Briault confirmed the regulator would provide guidance and tools to help firms, and has published examples of good and bad practice on its website.
However, Harry Katz, principal at Norwest Consultants, cast doubts on the FSA’s findings. He said: “For smaller mortgage brokerages there is no separation from management and advice-givers and they know that not to comply with the FSA’s principles would potentially put them out of business. Therefore they are probably more likely to adhere to the TCF ethos.”
