FSA announces progress made on TCF and sets further deadline
8th May 2007The Financial Services Authority (FSA) today reported an increase in commitment by senior management to the principle of Treating Customers Fairly (TCF) but warned firms who have failed to engage that they face tough action.
To ensure rapid engagement, the FSA has also announced a new deadline for all firms to have completed their work on TCF and be able to demonstrate that they are consistently treating their customers fairly by end of December 2008.
The current level of progress on TCF was set out in a report published today. It detailed firms' performance against the FSA's March deadline - by which time they had to be implementing necessary change in a substantial part of their business. The results show that 93% of major retail firms, 87% of medium sized retail firms, 74% of wholesale firms (where TCF is relevant) and 41% of small firms met the deadline.
Sarah Wilson, FSA Director with responsibility for TCF, said:
"We are encouraged that senior management in very many firms are showing strong commitment to TCF and are rising to the challenge of a more principles-based approach to regulation. The big prize here is achieving improved outcomes for consumers and this is why we have set a further deadline today. Meeting that deadline will require sustained focus from senior management.
"Following the report we will intensify our supervisory focus on any firm that has failed to sufficiently engage with TCF and include the use of enforcement where necessary. Most particularly, in addition to all that is already available to them, we will increase our efforts to assist small firms. Given their size and structure these firms can make rapid progress if they engage."
To help small firms, the FSA will expand the range of TCF online tools and begin the rollout of regional workshops. In future small firms can expect even more focus on TCF in their dealings with the FSA.
The FSA is devoting more resource to ensuring the new deadline is met and is currently developing a framework to use when testing firms which will identify potential TCF risk areas. Supervisors will also include in their regular work a greater amount of detailed testing at the front line. More details will be published in July.
