FSA urges firms to meet December deadline for TCF
UK firms urged to intensify efforts to meet December deadline to consistently treat customers fairly
LONDON – The latest report from the UK’s Financial Services Authority (FSA) shows firms are falling behind on their Treating Customers Fairly (TCF) programmes. Of the 96 firms surveyed by the FSA, only 13% met the March 2008 deadline to have the management information (MI) in place to test whether they are treating their customers fairly. However, the report also states many of those firms have invested significant time and energy working to measure TCF, and the FSA believes that, with a substantial, continuing effort, about 80% of the sample is still capable of meeting the December implementation deadline.
Sarah Wilson, FSA director for Treating Customers Fairly, said: “Having appropriate MI or other measures in place puts firms in a position where they can measure the quality of the outcomes they are delivering for consumers. These results show that adequate MI is not yet fully in place in the firms assessed – it does not mean that they are treating their customers unfairly. However, we now expect all firms to maintain their momentum and to undertake a significant amount of further work to meet the December deadline of demonstrating that they are consistently treating their customers fairly.”
The FSA will intervene with firms that have failed to meet the March deadline on time and where the regulator thinks it unlikely the firm is capable of meeting the December deadline.
To help firms consolidate their progress so far, and assist them in meeting the December deadline, the FSA has also published further material illustrating good and poor practice in the measurement of outcomes, using examples observed during the assessments.
In January 2008, the FSA launched the small firms’ enhanced strategy to help small firms achieve fair outcomes for consumers. The FSA has not yet assessed a representative sample of this group from which conclusions could be drawn about small firms as a whole, so results against the enhanced strategy will be published at a later date.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@risk.net
More on Regulation
FCMs warn of regulatory gaps in crypto clearing
CFTC request for comment uncovers concerns over customer protection and unchecked advertising
UK clearing houses face tougher capital regime than EU peers
Ice resists BoE plan to move second skin in the game higher up capital stack, but members approve
ECB seeks capital clarity on Spire repacks
Dealers split between counterparty credit risk and market risk frameworks for repack RWAs
FSB chief defends global non-bank regulation drive
Schindler slams ‘misconception’ that regulators intend to impose standardised bank-like rules
Fed fractures post-SVB consensus on emergency liquidity
New supervisory principles support FHLB funding over discount window preparedness
Why UPIs could spell goodbye for OTC-Isins
Critics warn UK will miss opportunity to simplify transaction reporting if it spurns UPI
EC’s closing auction plan faces cool reception from markets
Participants say proposal for multiple EU equity closing auctions would split price formation
Fed pivots to material risk – but what is it, exactly?
Top US bank regulator will prioritise risks that matter most, but they could prove hard to pinpoint