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FSA/PN/116/2006
9 November 2006

One third of delegates responded that the biggest barrier to implementing Treating Customers Fairly within their firms was lack of buy-in from senior management. This was the main message to emerge from the FSA's Treating Customers Fairly Conference during which an audience of 400 financial service practitioners were polled on the barriers to TCF, and how their own firms were progressing with this initiative.

This reinforces the point made in the FSA's progress report in July which found that, in spite of clear evidence of commitment, senior management aspirations had not yet fully permeated through businesses to result in improved outcomes for customers. And although in a further vote 22% of the delegates said their firm is "embedding" Treating Customers Fairly, evidence from the FSA's thematic work, such as the recent update on payment protection insurance, and its work with firms, including recent Enforcement cases, demonstrates there is still much to be done.

Addressing the Conference, Clive Briault, Managing Director, Retail Markets, said that firms and their senior management now needed to push on with their own Treating Customers Fairly initiatives, and measure the impact on consumers.

"We want firms and their senior management to drive through and demonstrate achievement of the six TCF outcomes.

"We want to maintain and increase momentum to deliver the consumer outcomes through the firms we regulate, by regulating those firms in a more principles-based way. Together, we can make a real difference to the consumers of financial products and services."

The Treating Customers Fairly initiative is a pioneering example of the FSA's move towards more principles-based regulation, which focuses on the outcomes to be achieved; the responsibility of senior management to achieve them; the opportunity for firms to do so in flexible, innovative ways; and a focus from the FSA on principles rather than detailed rules. As such, it requires dialogue between all parties – product providers, distributors, customers and the regulator – a recurrent theme in discussions.

Notes for editors

1. The FSA conference: "Treating Customers Fairly, Towards Fair Outcomes for consumers" was facilitated by journalist and broadcaster Liam Halligan, who is currently Economics Editor of the Sunday Telegraph. It took place Tuesday 7th November 2006 at The Brewery London EC1.

2. The six outcomes for consumers were published in the FSA's Treating Customers Fairly progress report in July, and are:

   • 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 groups of consumers 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 also as they have been led to expect; and

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

3. The questions posed, reported above, with results:
   
   What do you think will be the biggest barrier to implementing TCF in your firm?

   • Senior management buy-in: 33%

   • Cost: 11%

   • Quality of staff: 23%

   • Regulation: 10%

   • Other: 23%

   How far has your firm progressed with TCF:

   • Aware: 8%

   • Strategy and Planning: 26%

   • Implementing: 44%

   • Embedding: 22%

4. The full text of Clive Briault's speech is available on the FSA website

5. Over 400 delegates attended the conference. There were three separate panel sessions, one on corporate culture, one on consumer outcomes and one on the respective responsibilities of providers and distributors for the fair treatment of customers. Each panel consisted of discussion between a group of speakers, the full list of which can be found on the conference flyer.