TREATING CUSTOMERS FAIRLY

The Treating Customers Fairly (TCF) regime is one of the most important yet least understood initiatives the Financial Services Authority (FSA) has implemented. Although specific websites, events and pages of material have been dedicated to this subject, the regulator found in 2007 that only 41% of small firms could demonstrate the required standard.

The regulator's Small Firms Regional Assessments evaluate how well management of a firm approaches Treating Customers Fairly (TCF) and how they embed TCF into their business.

The assessments are based on the small firm management behaviours framework. The FSA affirm that "management of small firms can only ensure their good intentions actually result in good outcomes for consumers if they establish and maintain the right behaviours".

The TCF part of the assessments look at:

The relationship the firm's management has with its staff
How it communicates TCF to its entire staff (not just advisers)
What controls, including management information, it has in place to demonstrate consistent fair treatment of customers.

For more information on TCF take a look at the following links or contact us for an initial discussion:

FSA factsheet on management behaviours
Association of Mortgage Intermediaries, TCF pages