According to the Financial Services Board (FSB), the asymmetry of information between retail financial services consumers and financial institutions means that financial services consumers are particularly vulnerable to unfair treatment. The Treating Customers Fairly (TCF) Roadmap was published on 31 March 2011 by the FSB which is a regulatory process to ensure that the six TCF fairness outcomes are adhered to.
The six TCF Fairness Factors are:
Outcome 1: Culture and governance
Customers are confident that they are dealing with firms where the fair treatment of customers is central to the firm’s culture.
Outcome 2: Product and service design
Products and services marketed and sold in the retail market are designed to meet the needs of identified customer groups and are targeted accordingly.
Outcome 3: Disclosure
Customers are given clear information and are kept appropriately informed before, during and after the time of contracting.
Outcome 4: Suitable advice
Where customers receive advice, the advice is suitable and takes account of their circumstances.
Outcome 5: Performance and service against expectations
Customers are provided with products that perform as firms have led them to expect, and the associated service is both of an acceptable standard and what they have been led to expect.
Outcome 6: Claims, complaints and changes
Customers do not face unreasonable post-sale barriers to change product, switch provider, submit a claim or make a complaint.
The FSB expects all regulated firms to develop suitable measures, management information, governance and control mechanisms that will enable them to monitor and self-assess their TCF delivery. They must report on their TCF successes and risks to the FSB as and when required across the TCF lifecycle.
For these mechanisms to be meaningful and effective, it’s essential that they be appropriate to the particular firm’s strategies, business model and customer base. A standardised FSB-developed self-assessment tool is unlikely, on its own, to meet this expectation.
MetaPerformance will assist you to develop suitable measures, management information, governance and control mechanisms that will enable you to monitor and self-assess your TCF delivery and we’ll ensure you meet the FSB’s final desired TCF outcomes which are:
- Improved customer confidence
- The supply of appropriate products and services
- Enhanced transparency and discipline in the industry
Our approach is simplistic, crisp and short: