The FSA found a large percentage of small firms had not yet begun embedding TCF into its businesses, compared to 93 per cent of large and 87 per cent of medium-sized firms.
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All firms now have until December 2008 to complete the process of implementation but Sarah Wilson, director with responsibility for TCF at the FSA, admitted the regulator was happy with many of its findings.
“Small firms have done less well and that’s disappointing. However, it is important to stress that while many didn’t meet the March target, it was not because they were disinterested but because they were being too slow. With small firms too, it doesn’t take them as long to go from slow to rapid progress so many of those firms which hadn’t shown sufficient progress should get up to speed fairly quickly.”
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Wilson also admitted that the FSA will now take a ‘carrot and stick’ approach to firms not complying with TCF principles, with firms showing a willingness to comply given help and support.
The FSA also said it will be targeting more resources at smaller firms to help them make the adjustment.
Tracey Mullins, director of public affairs at the Association of Mortgage Intermediaries, commented: “We are pleased that so many firms met the 31 March deadline. However, it is deeply disappointing that so many small mortgage advisers failed to meet the deadline and we will continue to help our members as best we can to improve this situation. But failing to meet the deadline does not automatically mean that small firms are not treating customers fairly; neither does it mean that those firms who have met the deadline have no more work to do on this front.”
