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FSA getting set for TCF crackdown on firms

The FSA’s current PPI enforcement action blitz will be mirrored by a similar TCF campaign cracking down on firms’ relationship with commission, according to Compliance Register.

Compliance Register secretary Ben Goh says he believes the FSA is ready to get heavy-handed with advisers and providers in the New Year following on from FSA chairman Sir Callum McCarthy’s landmark Gleneagles speech.

The FSA last week fined Loans.co.uk £455,000 for failing to treat customers fairly when selling PPI and the regulator is considering action against several other firms.

Goh expects a similar rash of cases against advisers and providers with high persis-tency rates who the FSA judges to be disobeying TCF rules and who fall foul of accusations of churning.He says it is still to be proved whether the rewriting and stripping down of the Cob rulebook to allow for a more principle-based approach will create more headaches than benefits for advisers, particularly smaller IFA firms.

Goh says: “The FSA’s work on PPI shows that it is baring its teeth with regard to TCF and I expect to see a similar batch of enforcement action in the first half of next year against advisers falling foul of TCF requirements with regard to commission payments.”

FSA fine, p28

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