Understanding TCF By the end of December '08 all firms are expected to demonstrate to themselves and the FSA that they are consistently treating customers fairly.
But what does TCF really mean?
It might seem strange, but perhaps the best place to begin, is to understand what TCF does ‘not’ mean? These points were originally identified by the FSA in 2004 and are still very relevant today.
TCF does not mean:
- The same as being “nice” to customers
- That all firms are required to offer the same products and services
- Inhibiting innovation in new products
- That a firm must design or market different products for each individual customer
- That the FSA will be an arbiter of what products customers should want or be sold
- That customers are no longer expected to make decisions or take responsibility for the decisions they make.
The aims of TCF are to help clients fully understand the features, benefits and risks of the financial products they buy; and to avoid the sale of unsuitable products by encouraging best practice before, during and after sale.
TCF and your customer
According to TCF principles, your customer has the right to expect certain standards from the advice you give and the products you supply.
It is your responsibility to ensure that you comply to these standards by, amongst other things, ensuring that you have correctly understood your customer’s current requirements, considered the available options on the market and advised them on a product which is correct for their needs.
TCF guidelines also state that you should keep full and accurate customer records and advise them of their right to request further information and to return for a future review of their product at a later date.
TCF and you
Because Scottish Provident takes TCF seriously we want to ensure that our products and services allow you to recommend our plans with confidence. We have taken steps to ensure that we help intermediaries to commit to TCF at all three stages of the sales process: pre-sale, point-of-sale and post-sale.
A key focus of TCF is to ensure that the language used within our industry is easy to understand for all concerned. This begins with us at Scottish Provident ensuring that the literature we provide, both for your own use and for your clients, is clear and easy to understand.
To learn more about TCF and how Scottish Provident can help you remain compliant with the new guidelines, we have produced a poster and handy guide to Treating Customers Fairly. Visit www.scottishprovident.com to request your copy.
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