The FSA has found that while fair treatment of consumers was being built into firms’ cultures, there needed to be a renewed drive if they were to deliver on improved outcomes for consumers.
Speaking at the regulator’s third TCF Conference, Sarah Wilson, director of TCF, said: “We have reached a turning point on TCF. The deadlines provide firms with a unique opportunity to achieve real cultural change and a major shift in consumer outcomes – benefiting consumers, and the industry. For firms that rise to the challenge, where senior management do drive change in the next 14 months, there will be a regulatory dividend.
“For those firms that miss the deadline and fail to take their obligations seriously, our message is absolutely clear – you will face more regulatory intervention.”
Clive Briault, managing director, retail markets at the FSA, added: “It is in firms’ own interests to deliver TCF through being fair, open and transparent, because it makes good business sense within the present and evolving social context. We will judge whether firms are treating their customers fairly, but we will not be the only one doing so.”
John Howard, chairman of the Financial Services Consumer Panel said: “There has been a worryingly slow rate of progress shown by companies in getting to grips with TCF and making a difference for customers. This is particularly true as the FSA starts to remove its detailed rules in anticipation of firms giving a better deal to consumers through principles-based regulation. We question whether the commission can ever be compatible with TCF.”
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