Treating customers fairly guidance could be turned into rules as part of the FSA’s work on product intervention.
It reveals that some respondents to the discussion paper are unconvinced of the need for new product intervention rules and think the existing regulatory framework could be used instead, particularly through initiatives such as TCF and the unfair terms in consumer contracts regulations. But the FSA says the TCF framework has not gone as far as it could.
The paper says: “We are considering turning some of the responsibilities of providers and distributors for the fair treatment of customers guidance into rules to add certainty for firms and strengthen our ability to take enforcement action.”
It argues that this will avoid high additional compliance costs. It plans to adopt a single set of rules and guidance on product intervention, including the use of TCF guidance.