Banks lead progress on treating customers fairly

Customers can be confident of a fair deal from their bank as UK financial institutions make good progress on implementing the treating customers fairly principle [TCF] set by the Financial Services Authority, the British Bankers’ Association said today.

The association was speaking following the publication of the latest progress report from the FSA which confirms that the larger financial institutions in particular, including the major retail banks, are making significant progress on TCF implementation.

TCF is central to the FSA’s retail strategy and a key part of the FSA’s move to more principles-based regulation. The TCF initiative aims to deliver the following outcomes for consumers:

Consumers can be confident that they are dealing with firms where the fair treatment of customers is central to the corporate culture;

Products and services marketed and sold in the retail market are designed to meet the needs of identified consumer groups and are targeted accordingly;

Consumers are provided with clear information and are kept appropriately informed before, during and after the point of sale;

Where consumers receive advice, the advice is suitable and takes account of their circumstances;

Consumers are provided with products that perform as firms have led them to expect, and the associated service is both of an acceptable standard and as they have been led to expect;

Consumers do not face unreasonable post-sale barriers imposed by firms to change product, switch provider, submit a claim or make a complaint.

In July last year the FSA set a deadline of March 2007 for firms to implement TCF across a substantial part of their business.

Banks lead progress on treating customers fairly

Chief Executive Angela Knight CBE said: “Banks are committed to treating customers fairly and are working hard to ensure the grass roots staff are up to speed on everything they should be doing. Senior managers are working with the Financial Services Authority to ensure that all banks embed their TCF strategies throughout their businesses.

“British banks have always offered a wide range of products and services to their customers and this treating customers fairly initiative gives regulatory weight to what they have been doing for years. The banks operate in a highly competitive environment and they recognise that TCF is both good business practice and a long term commitment to their customers.”

“It is clear from today’s FSA report that major retail groups in particular, such as the retail banks, are doing a good job with the FSA’s TCF requirements.”