The treating customers fairly principle requires firms to identify all customers who may have been missold or received poor service and invite them to claim for compensation, says law firm Reynolds Porter Chamberlain.
RPC says firms need to make their own judgments on the meaning of “fairness” and record the rationale for their decisions, but it warns this will not prevent future problems for firms faced with retrospective redefinition by the Financial Services Authority (FSA). It believes TCF requires firms not to reject complaints they believe the Financial Ombudsman Service (FOS) would uphold, which threatens to create a principle of precedent applicable to FOS decisions. “The logical conclusion seems to be that TCF would require firms to identify all other customers in a similar position and then ...
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