The FSA has published its latest progress report on the Treating Customers Fairly (TCF) initiative. The report states that the following number of firms had successfully met the FSA’s March 2007 deadline, by which time they had implemented TCF in a substantial part of their business:
- 37 major retail groups being 93% of firms regulated by the FSA’s Major Retail Groups division.
- 379 (of a sample of 436) medium sized firms being 87% of firms regulated by the FSA’s Retail Firms division.
- 49 (of a sample of 66) wholesale firms where TCF was materially relevant (74%).
- 273 (of a sample of 659) directly authorised small firms being 41% of firms regulated by the FSA’s Small Firms division.
The report also noted that some sectors performed particularly poorly. Only 22% of small mortgage advisers and 45% of small general insurance advisers met the March 2007 deadline. In addition only 52% of small directly authorised financial advisers met the deadline.
In light of this the FSA has also announced a new deadline of December 2008 for all firms to have completed their work on TCF and to be able to demonstrate that they are consistently treating their customers fairly.
At the same time as publishing the report the FSA issued a press release. In the press release Sarah Wilson, FSA Director with responsibility for TCF, states:
“Following the report we will intensify our supervisory focus on any firm that has failed to sufficiently engage with TCF and include the use of enforcement where necessary. Most particularly, in addition to all that is available to them, we will increase our efforts to assist small firms. Given their size and structure these firms can make rapid progress if they engage.”
View Treating Customers Fairly initiative: progress report, (PDF 209KB), 8 May 2007
View FSA Press Release - FSA announces progress made on TCF and sets further deadline, 8 May 2007