View more on these topics

FSA publishes TCF support and promises dividends if standards improve

The FSA has published guides to help adviser firms improve treating customers fairly standards and promised less scrutiny of firms that prove their TCF credentials.

The FSA has today published a paper on TCF culture including examples of good and bad practice and a framework allowing a firm to assess the risk its culture presents in developing TCF.

It has also published a guide to management information for TCF summarising messages from other FSA publications and including new case studies and examples of good and bad practice.

Director responsible for the TCF initiative Sarah Wilson says the papers are aimed at addressing the gap between the level of engagement of senior management in firms and that of middle-management and other staff.

She says much of the FSA TCF work will focus on talking to middle-management and front line staff to ensure the customer experience at the coal face matches up with TCF improvements that have been seen at senior management level.

Wilson says when the FSA is satisfied a firm has robust systems and controls in place and that senior management are reviewing and using reliable TCF management information it will significantly reduce the level of testing carried out on the firm’s culture on this issue.

In its July newsletter the FSA announced it will be visiting 50 firms in September to review their processes for giving advice following up its previous TCF quality of advice work.

The FSA has set down two TCF deadlines for firms- March 2008 for firms to show they have appropriate management information or measures in place to test TCF and December 2008 to demonstrate they are consistently treating their customers fairly.

Wilson says: “One of the things we have consistently said over the last 12 months is there is a gap between the level of engagement in TCF at senior management level and the experience of the customer at the coal face.

“We strongly encourage firms to consider the issues we have identified and to think about how to use the framework to review their culture regarding treating customers fairly.

“We know that many firms find identifying, collecting and using management information for TCF challenging. We have issued material on MI and intend to continue to work with the industry to take this forward and to provide additional useful material ahead of the March 2008 deadline.”


Cummings’ rallying call to join fight against RDR

Aifa has called for the advice community to come together to fight retail distribution review proposals which it believes are a grave danger to the future of professional advice and hugely damaging to consumers.It has drawn up a sixmonth battle plan in which it will consult members, conduct consumer research and talk to politicians, regulators, […]

Brokers call for exit talks as just two lenders rethink fees

Mortgage brokers are calling on trade bodies and the FSA to open up a debate on what level of exit fee is reasonable.Only two out of the top 20 mortgage lenders have confirmed that they will be scrapping exit fees for new customers despite the FSA’s July 31 deadline for lenders to “review” their charges.Cheltenham […]

Hips set to go ahead despite late stand by Lords

The House of Lords has made its final stand against the implementation of home information packs on August 1, with members voting to scrap the controversial scheme.The motion to revoke the legislation was passed by a small majority of 186 to 160. However, with Parliament going into summer recess, the regime looks set to be […]

'Feeling the Squeeze'

Royal London carried out a UK wide survey with 2,500 consumers age 35-44 over the summer. The survey found that over a third, 34 per cent, said their finances felt Squeezed and so were struggling to meet day-to-day expenses, despite 87 per cent being aware that they need to save more. However, the survey did […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment