Treating customers fairly (TCF) is one of the key planks in the Financial Services Authority’s (FSA) move to Principle Based Regulation (PCR). Having to implement a series of European directives the FSA are challenged by a rule book that is just too big. If FSA do more than Europe dictates they could be left to go cap in hand to the Commission accused of ‘gold plating’.
But why focus on TCF specifically when there are 11 Principles? Well TCF is a common theme in the Principles and it is the example of many firms clearly failing to treat their customers fairly that has prompted action in this area.
The misselling of Payment Protection Insurance (PPI) is just one sorry example. Automatically signing up customers whether suitable or not, adding single premiums to mortgages costing thousands in additional interest and paying distributors high commission to sell as many as possible are but a few examples of avoiding TCF obligations.
If firms are doing their jobs properly TCF should happen as a matter of course. However in regulation evidence is everything. ‘If it isn’t written down it never happened’. TCF management information (MI) should give firms the tools they need to embed TCF and meet the FSA deadline. The real challenge will be to use that MI to change the culture of firms as corporate values and mission statements will fail without the behaviours necessary to support them.
In this workshop we lift the bonnet on TCF, examine the mechanics then provide some ideas and solutions for ongoing maintenance and repair. In particular we examine the importance of organisation alignment in cultural change and embedding TCF where actions speak louder than words.
We can offer these workshops direct to your firm. A cultural change programme taking 3 - 6 months to complete may be the answer and can also be arranged.