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FSA says Arrow points the way ahead for TCF

The FSA is to accelerate the full integration of its treating customers fairly initiative into its main supervisory work from January.

The regulator says that firms will still be expected to meet the December 2008 deadline and TCF delivery will be tested as part of a firm’s normal supervision such as Arrow visits.

Small firms will be assessed through the FSA’s three-year regional assessment programme.

FSA director of TCF Sarah Wilson says the regulator sees this as the best way forward for the initiative.

She says: “We have decided not to carry out the one-off exercise with a random selection of big and small firms next year and will no longer publish a final TCF report on the December deadline which was planned for the third quarter of 2009. Instead, we will include TCF in our annual report.

“This change does not alter the importance of firms implementing TCF by December this year.”

The Consulting Consortium managing director Joanne Smith says she believes only 40 to 50 per cent of firms will achieve the December deadline and the FSA could not afford the poor publicity.

She says: “By wrapping it into Arrow visits, it can still get the desired effect of catching those firms which have not embedded TCF but without the undue publicity.”

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