FSA warns TCF must be 'business as usual'

It says the industry has made progress in assessing, developing and implementing the fair treatment of customers, but there is more for the senior management of firms to do.

Among the examples put forward of good practice in this area, the FSA suggests how firms could build Treating Customers Fairly more centrally into their product design process by stress-testing new products from the customer’s point of view, putting additional effort into communicating the risks and benefits of new products clearly, and using after-sale surveys to test whether consumers have really understood what they have bought.

Oliver Page, the FSA's director leading the TCF work, said: "Putting customers' interests at the heart of their business structures should be 'business as usual' for firms. While we have seen encouraging signs of progress from the industry, there is still more to do before we can be satisfied that all firms are treating customers fairly. We have seen examples of firms that have not gone much further than an initial consideration of how Treating Customers Fairly works and, while we do not expect things to change overnight, we do expect senior management to take the lead and make practical changes to the way they do business in order to implement Treating Customers Fairly strategies."