UK’s Financial Services Authority Calls For Renewed Energy To Deliver Treating Customers Fairly

The pace of progress must increase if firms are to meet next year's deadlines, according to the latest report from the Financial Services Authority (FSA).

Launched today at the FSA's third Treating Customers Fairly (TCF) Conference, the report, 'Treating Customers Fairly: measuring outcomes', finds that whilst 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 to themselves and the FSA that they are treating their customers fairly.

The FSA continues to direct a significant proportion of its resources to TCF. To help firms further, the FSA will today publish on its website, real examples of MI for each of the TCF Outcomes, along with examples of MI development.

Speaking at the Conference, Sarah Wilson, Director, Treating Customers Fairly, 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 do drive change in the next fourteen 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."

Background

1. Measuring Outcomes can be found on the FSA website.
2. The full text of Sarah Wilsons speech can be found on the FSA website.
3. To help firms develop their MI, the FSA will publish today on its website real examples of management information for each of the six outcomes, along with examples of MI development, oversight and action planning.
4. The FSA regulates the financial services industry and has four objectives under the Financial Services and Markets Act 2000: maintaining market confidence; promoting public understanding of the financial system; securing the appropriate degree of protection for consumers; and fighting financial crime.
5. The FSA aims to promote efficient, orderly and fair markets, help retail consumers achieve a fair deal and improve its business capability and effectiveness.