Can you prove that you are treating your customers fairly?
The Financial Services Authority (FSA) continues to challenge the industry to improve monitoring and delivery of Treating Customers Fairly (TCF). The burden of proof is very much with senior management and there are now clear timescales to embed and evidence consumer outcomes. However, the challenges remain and embedding TCF is not easy. An organisation wide, structured and risk based approach that identifies and learns from key customer indicators is the answer.
Clearer consumer outcomes
The FSA are shifting emphasis from a rules-based approach to a more principles-based approach. At the forefront of this change is Principle 6: "Customers' interests – a firm should pay due regard to the interests of its customers and treat them fairly".
TCF – a regulatory and brand priority
Under the TCF umbrella, the FSA have imposed a number of fines in relation to inadequate systems and controls, mis-selling and poor handling of complaints. The FSA will look to take enforcement action against firms where there is no genuine attempt to deliver on TCF and where there is significant risk or actual detriment to customers.
The FSA are not alone. The Office of Fair Trading, whose mission is to "make markets work well for consumers", is also becoming more proactive in compelling firms to deliver a better deal to retail customers. Ongoing investigations into banking and credit card charges are evidence of this. Parliament has also been vocal in this area, as evidenced by the Treasury Select Committee report into credit charges and marketing.
For further information, download our publication Treating customers fairly – an evidence based approach. (PDF, 302 KB)
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