General information

 

TCF Related Projects

Quality of advice processes

In the past we have found widespread significant weaknesses in financial advisers and mortgage brokers. This work remains a priority for the year ahead and we will be following up again to ensure firms have acted upon our findings and improved practices to achieve the levels of compliance we need to see as commonplace in the market.

High pressure selling

Enforcement action taken against a number of firms as a result of our work looking into high pressure sales tactics on higher risk shares. Using such tactics is not treating customers fairly and we will continue to investigate firms employing such practices.

Payment protection insurance

This remains a key topic as there needs to be significant improvements in the way customers are treated when purchasing PPI. We will be focusing our attention on those firms operating in the retail sector.

Controls over Appointed Representatives (ARs)

Last year we found that customers of ARs were at risk of being treated unfairly because their principal firm did not have adequate controls in place. We will continue following up this work.

Right to Buy mortgages

We will be paying particular attention to the firms who specialise in advising customers exercising their right to buy property to ensure these consumers are being treated fairly.

Protection insurance

We will be reviewing the advice and sales of both low-risk and high-risk protection products to ensure firms understand their respective obligations under the new ICOB requirements.

Pensions

Work will include assessing the quality of advice firms give consumers when recommending transfers into personal pensions and self-invested personal pensions. These transfers may be suitable for some consumers, but could result in financial detriment to others.

Multi-manager funds

Follow up findings of exploratory work last year looking at reasons why firms recommend multi-manager funds. Further work will be conducted to ensure that consumers are being treated fairly.

Non TCF Projects

Mortgage fraud

There is increasing evidence of fraud occurring in the mortgage sector. We will be increasing our focus and will be assessing the systems and controls within mortgage firms to make sure that firms are not being used for fraudulent business.

Regulatory returns

The regulatory information we receive is key to identifying risks, so it is important that we receive timely and accurate returns. We have implemented several initiatives aimed at educating and encouraging firms with persistently poor returns to improve the quality of submissions. Firms that continue to submit poor returns will be subject to closer supervision.