The regulator has also urged those firms that are already implementing TCF to maintain the momentum of their TCF work so that it delivers real benefits to consumers.
The FSA’s latest progress report, 'Treating Customers Fairly – towards fair outcomes for consumers', set out two key findings. The first is the mixed picture, with the majority of firms making good progress, but others lagging behind. As a result, the FSA has announced that it expects those firms who are behind to have begun implementing their TCF plans in a substantial part of their business by the March deadline.
The second finding is that while the senior management of most firms are showing a commitment to reviewing their practices and introducing changes where necessary, in many cases this has not yet fully reached the customer-facing front-line of those firms' activities.
The progress report sets out six desired outcomes for consumers which firms should be focused on achieving. The FSA will measure the success of these outcomes through the use of day-to-day supervision and thematic work, and through firms’ own management information, and will continue to take action – including enforcement action where necessary - on issues relating to TCF where there is significant potential or actual consumer detriment.
Clive Briault, managing director retail markets at the FSA, said: "We acknowledge that most firms are making good progress on implementing Treating Customers Fairly and we encourage their senior management to keep the momentum going. But 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 business. The Treating Customers Fairly principle will only be effective when it makes a real difference to the consumers it was introduced to benefit.
"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. We understand that we need to help firms meet the deadline and deliver these positive outcomes and we will continue to provide tools to help them. By next year we expect to start seeing a measurable change for consumers, and this will be a good result for all."
The six desired outcomes will mean that consumers:
- are dealing with firms where the fair treatment of customers is a key part of the corporate culture;
- are marketed and sold products in the retail market that have been designed to meet the needs of identified consumer groups and are targeted accordingly;
- are provided with clear information and are kept appropriately informed before, during and after the point of sale;
- are provided with suitable advice which takes account of their circumstances;
- are provided with the product performance they have been led to expect by firms with which they deal and the associated service is both of an acceptable standard and as they have been led to expect; and
- do not face unreasonable post-sale barriers imposed by firms when they want to change product, switch provider, submit a claim or make a complaint.
