The regulator says firms will still be expected to meet its December 2008 deadline and from January TCF delivery will be tested as part of a firm’s normal supervision such as Arrow visits.
Small firms will be assessed via the FSA’s three year regional assessment programme.
The regulator says it will no longer publish a final TCF report on the December deadline which was planned for Q3 2009.
FSA managing director of retail markets Jon Pain says: “Today’s announcement means the FSA can deliver the benefits from the TCF programme more quickly. Our focus will be on the outcomes for consumers. We will continue to challenge firms rigorously where there are issues and take decisive action where necessary.
“The standard against which firms will be judged remains high, and the penalties for not complying remain tough.”