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FSA/PN/087/2007
16 July 2007

The Financial Services Authority (FSA) has today published Guidance on the responsibilities of providers and distributors of product and services for the fair treatment of customers.

The Guidance arises from the FSA’s Treating Customers Fairly initiative. In the FSA’s view, a customer should receive the same fair treatment whether their product or service is provided and distributed by one firm or several.

Today’s publication is a principles-based response to the industry’s request for greater clarity on the resulting responsibilities for providers and distributors. It follows wide consultation.

Based on the FSA’s Principles for Businesses, the Guidance sets out high level responsibilities for providers and distributors through the life cycle of a product or service. It can therefore be applied across all financial sectors in evolving markets.

Depending on the nature of their business, firms should consider their responsibilities during product or service design, marketing and selling, post-sale service and information, and complaints handling.

Sarah Wilson, Director responsible for the Treating Customers Fairly initiative, said:

"A customer should receive the same fair treatment whether their product or service is provided and distributed by one firm or several.

"To ensure this happens, each firm in a chain should review carefully their responsibilities under the FSA Principles – whether they are due to another firm or directly to the retail customer. If firms each discharge their own responsibilities in full, we will see fairer outcomes for consumers."

Alongside the Regulatory Guide, the FSA is publishing a Policy Statement setting out responses to the consultation and its comments on these. The FSA will also publish a report looking at good and poor practice in relation to product design – a key area of responsibility considered in the Guidance.

Notes to editors

1. The Regulatory Guide and Policy statement [PDF]
2. Report into good and poor practice in relation to product design:
   Treating Customers Fairly (TCF) in product design [PDF]
3. The FSA regulates the financial services industry and has four objectives under the Financial Services and Markets Act 2000: maintaining market confidence; promoting public understanding of the financial system; securing the appropriate degree of protection for consumers; and fighting financial crime.
4. The FSA aims to promote efficient, orderly and fair markets, help retail consumers achieve a fair deal and improve its business capability and effectiveness.