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Financial firms are failing on fairness

Financial services companies are failing to meet the FSA’s requirements for Treating Customers Fairly according to the latest research from consultancy PricewaterhouseCoopers.

PwC’s latest report concludes that there are still widespread shortcomings across the industry in preparation for TCF.

It says that few companies appear to have completed the strategic prep- aration that is needed and that work is likely to remain fragmented and therefore ineffective.

PwC warns that without more work to put systems in place that will monitor and assess the perfomance of an organisation’s TCF framework companies may face further intervention from the regulator to establish ‘fair’ principals.

The report concludes that TCF makes sense at both commercial and strategic levels as it will earn new customers and retain existing ones.

Operationally, TCF will bring an increased compliance burden reflected in impacts on processing and delivery costs as well as an element of expense related to investment required to put the necessary infrastructure and management behaviour standards in place.

But it says that with planning over a period of time the change to a self-designed and integrated response to TCF is expected to have much higher potential of delivering value for businesses themselves and their customers.

On a positive note the report says that provided financial organisations take the opportunity to develop a response to TCF that is right for their business the process will refresh existing business models.

PWC partner David Taylor partner says: “Some firms are making real progress, but there remains much to do before general industry practice meets the regulator’s expectations. Beyond the regulatory drivers, there are much wider positive implications for commercial performance, competitive diff- erentiation and reputation enhancement.”

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