Speaking at the FSA Annual Public Meeting today chairman Nick Prettejohn said that while he supports the target outcome of treating customers fairly, he believes the regulator’s focus has become too strong.
The Panel believes that the TCF program has become excessively preoccupied with “granular detail”, turning TCF into a series of process oriented tasks rather than focusing on outcomes.
He added: “I’m concerned that TCF has become disproportionate and is taking up too much resource at the FSA. It has been over detailed and insufficiently risk based in its application.”
The Panel has called for a fundamental overhaul and review of TCF and says it welcomes the FSA’s decision to conduct some detailed work on assessing the costs, burdens and impact of TCF.