View more on these topics

Room for improvement in treating customers fairly

The industry still has a long way to go to embrace the FSA’s treating customers fairly regime, according to a newly launched consultancy.

TCF Index says its independent research, conducted by NOP, shows a high proportion of senior management are not assessing TCF policy with only 26 per cent of respondents saying that all senior executives follow TCF policy. A further 21 per cent say most senior executives follow broad TCF principles.

When asked about the balance between customer needs and profit targets with regard to product launches, 42 per cent say there is an equal balance, 21 per cent say customer needs ranked higher than profit targets and 19 per cent say profits come first.

When asked about treating complaints, 59 per cent say firms either use complaints to improve service or at least took them seriously but 27 per cent say they are handled, at best, in line with regulatory requirements.

TCF Index joint managing director Phil Evans says: “Our research has shown that, based on current performance, too many firms could be taken to task by the regulator next year as there are many areas for concern. TCF is about balancing the customer’s needs with the firm’s needs, being absolutely clear about what the firm and its services offer and being transparent about fees and levels of service. Our objective is to help firms meet these criteria for the March and December 2008 deadlines”.

Huntswood head of regulatory consulting Eurfron Jones says: “The real opportunity is that of the competitive advantage that TCF can bring firms, in addition to protecting the customer. To see TCF as simply another regulatory requirement is missing the chance to do fairer, more rewarding, more sustainable business. The opportunity is tangible rewards in the areas of improved customer service, increased effectiveness in compliant sales and greater customer retention, all leading to increased profits.”

Recommended

Food for thought

Who would have thought the investment world could have recovered to the extent it had, mused the chairman of the curiously named Betelgeuse Investment Funds as he looked through the sales figures for the first four months of the year.

SWIP appoints new head of Nordic

Scottish Widows Investment Partnership has appointed Andre Andrzejsson as head of Nordic where he will be responsible for expanding SWIP’s business in the region, with a focus on the institutional market.Andrzejsson joins SWIP from CDK Group where he was sales and marketing director.He will be based in SWIP’s London office and will report to SWIP […]

US election

Capital Market Notes, November 2016 David Lafferty, chief market strategist at Natixis Global Asset Management, looks at the impact on markets and portfolios since the somewhat surprising outcome of the US election. Click here

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment