A firm must pay due regard to the interests of its customers and treat them fairly
FSA principle six
In 2007, TCF breaches comprised 40 per cent of all FSA fines compared with only 11 per cent in 2006!
HFC Bank Limited was recently fined £1,085,000 for failing to take reasonable care to ensure that the advice it gave customers to buy Payment Protection Insurance was suitable and for not having effective systems to train and monitor staff. Similarly, Kilminster Financial Management Limited was fined £42,000 for failing to monitor its staff sufficiently and keep appropriate training and competence records. These serve as examples of the FSA’s willingness to take disciplinary action for breaches.
There are only a few weeks left until the first TCF deadline. The FSA is set to become tougher on enforcements in the coming year.
Make sure that you are ready.
By the end of December 2008, firms must be able to prove that they are consistently treating customers fairly to the FSA.
The FSA has made clear that the December deadline is final and that no firm is exempt in this, however large or small.
The FSA will also examine what really happens within the firm in terms of leadership, decision-making, and strategy and controls, as well as people-focused areas, such as training and competence, reward and internal communications. The FSA has noted that "training is the foundation stone of a successful TCF strategy" and one of the "cultural drivers" for the embedding of TCF.
Complinet provides a range of courses covering key FSA rules, all updated for the Markets in Financial Instruments Directive and the FSA’s move towards principles-based regulation. Our TCF course introduces the concept of TCF to all levels of an FSA-regulated firm. It ensures that each individual is thinking through the TCF implications of their actions when going about their everyday business.
Most importantly this course provides the ability to assess learner understanding and practical application of TCF through the learning management system, RecordKeeper. The course also provides a full audit trail, vitally important in demonstrating that the organisation is embedding the principle and practice of treating customers fairly across the business.
A "one-size-fits-all" approach, however, is not appropriate for TCF training. The course can be tailored to individual demands. All Complinet e-learning courses can be customised to take into account your firm's bespoke policies and requirements.
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