The release of the principles-based guidance followed a request from the industry for greater clarity on the subject.
The FSA’s stated view is that a customer should receive fair treatment regardless of whether a product or service was provided or distributed by one company or several.
The guidance is based on the FSA’s Principles for Businesses and sets out high level responsibilities for providers and distributors through the life cycle of a product or service. It can therefore be applied across all financial sectors in evolving markets.
Depending on the nature of their business, firms should consider their responsibilities during product or service design, marketing and selling, post-sale service and information, and complaints handling.
Sarah Wilson, director responsible for the TCF initiative at the FSA, said: “Each firm should review their responsibilities under the FSA principles – whether they are due to another firm or directly to the retail customer. If firms each discharge their own responsibilities in full, we will see fairer outcomes for consumers.”
Eddie Smith, director of operations for the Alliance of Mortgage Packagers & Distributors, said: “This is a great move. It will help everyone across the board. We’ve tried to make sure our internal code of compliance is as strong as it can be until the FSA handed down guidance and we will want to incorporate where we can any points on TCF it has.”
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