The guidance arises from the FSA’s TCF initiative. In the FSA’s view, a customer should receive the same fair treatment whether their product or service is provided and distributed by one firm or several.
Its publication is a principles-based response to the industry’s request for greater clarity on the resulting responsibilities for providers and distributors. It follows wide consultation.
Based on the FSA’s Principles for Businesses, the guidance 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 Treating Customers Fairly initiative, said: "A customer should receive the same fair treatment whether their product or service is provided and distributed by one firm or several.
"To ensure this happens, each firm in a chain should review carefully 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."
Alongside the Regulatory Guide, the FSA has published a policy statement setting out responses to the consultation and its comments on these. The FSA will also publish a report looking at good and poor practice in relation to product design – a key area of responsibility considered in the guidance.
