Clive Briault, managing director of retail markets at the FSA, told the British Bankers’ Association (BBA) this week how the regulator aims to make retail markets and services work more efficiently and effectively.
He said it would focus on the three key elements of an effective retail market: capable consumers; clear and understandable information available for consumers; and soundly managed and well-capitalised firms who treat their customers fairly.
Briault said: “If firms do not embrace the principle of treating customers fairly we will reconsider how best to achieve the fair treatment of customers, be it through the introduction of ever more detailed rules or tougher enforcement action.”
The FSA has set up a consultative group, which involves industry and consumer groups, and will be helping firms to understand what constitutes the fair treatment of customers through a series of good practice case studies that can be used as a form of benchmark guidance.”
Bernard Clarke, spokesman at the Council of Mortgage Lenders (CML), responded: “Although Briault’s comments are clearly directed at the whole of the financial services industry, not just mortgage lenders, we welcome clarification of the FSA’s view of the Treating Customers Fairly (TCF) initiative.
“We are already members of the FSA’s consultative group and will play a full part in the continuing discussions.”
John Ellis, head of public affairs at the LIA, said: “The FSA is laying down a set of professional standards rather than putting a straight-jacket on firms. It’s all down to interpretation of the rules.
“But brokers will have to take ownership of their own business and determine how they will treat customers fairly to avoid further statutory regulation.”
