Following an initial review by the regulator, the FSA confirmed that it would be targeting firms who failed to meet the March deadline, and suggested that firms that failed to make changes would face ‘significant cost implications’.
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Clive Briault, managing director of retail markets at the FSA, said the FSA would continue to change its regulation as a result of market conditions, following research. He said: “We have found greater risk of consumer detriment for those buying personal protection products and so we are considering a small number of measures to improve sales practices around these products.”
He added: “By March 2008 firms are expected to have appropriate management information or measures in place to test whether they are treating customers fairly. By the end of December 2008 all firms are expected to be able to demonstrate that they are consistently treating their customers fairly.”
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However, an anonymous broker, said: “Lenders are not doing enough to treat customers fairly. It’s not been established who the customers are in these cases – the borrower or broker?”
