This follows on from the first stage of the regulator's TCF assessments which saw its chief executive, Hector Sants, announce plans to further investigate the 59 per cent of small firms which were not yet fully implementing TCF practices.
The FSA has now revealed plans to embark on its rolling programme of assessments beginning in Northern Ireland in March, to really hammer home the severity of not conforming to the principles based regulation ahead of slated TCF deadlines.
The assessments will cover 11,300 retail intermediaries, including financial advisers, mortgage brokers and general insurance brokers, over the course of the next three years. This will take the form of regional roadshows, followed by structured visits or telephone interviews.
All in all, 3,000 firms will be approached this year, increasing to 4,000 per annum for each subsequent year. Firms raising the most concern will receive full follow up visits, accounting for around a quarter of businesses.
The regulator's strategy is designed to increase both the supervision of and contact with small firms, combining support for intermediaries embracing TCF outcomes with a tough approach for those who are not.
Stephen Bland, director of small firms at the FSA, said that the fast approaching deadline took centre stage: "It is imperative that firms engage with TCF and drive up standards.
"The measures will have an additional cost to intermediaries, but this should be outweighed by their positive effect on both consumer protection and confidence in the financial services industry.”
The measures have been welcomed by Mark Rothery, chairman of the Smaller Businesses Practitioner Panel.
Rothery said that it was a 'win/win propositon' which will incentivise firms willing to comply as well as acting as a deterrent to those who wish to fly under the radar - precisely the FSA's objective.
In addition to the new measures for small firms, the Small Firms Division and FSA Contact Centres, which includes the Firm Contact Centre, are joining together on 1 February. This will give a more consistent and streamlined service to small firms.
