FSA calls for renewed energy to deliver TCF

Increased pace needed for firms if they are to meet the TCF deadline, says UK supervisor

LONDON – A new report from the UK Financial Services Authority has found that firms need to speed up progress on ‘Treating Customers Fairly’ if they are to meet the 2008 deadline.

The report, ‘Treating Customers Fairly: measuring outcomes’, has found that, although some firms are building fair treatment of consumers into their culture, there needs to be renewed energy and drive from firms if they are to deliver on improved outcomes for consumers.

By March 2008, firms must have appropriate management information (MI) measures in place – and by December 2008, they must be able to demonstrate they are treating their customers fairly. To help firms further, the FSA has published on its website real examples of MI for each of the TCF outcomes, along with examples of MI development.

Speaking at the FSA TCF Conference, Sarah Wilson, director of TCF, said: “We have a reached a turning point on TCF. The deadlines provide firms with a unique opportunity to achieve real cultural change and a major shift in consumer outcomes – benefiting consumers, and the industry.

“For those firms that rise to the challenge, where senior management does drive change in the next 14 months, there will be a regulatory dividend. Supervisors have little reason to ask further detailed questions if you produce, and use, well-constructed measures of your performance and they show a strong story.

“For those firms that miss the deadline and fail to take their obligations seriously, our message is absolutely clear – you will face more regulatory intervention.”