Treating Customers Fairly must get through to customers says Consumer Panel

6 November

The Consumer Panel has today welcomed the FSA's publication of an update on progress that firms have made in delivering the six Treating Customers Fairly (TCF) Outcomes. However, the Panel has expressed its concern about the slow progress in the principles working through to customers who should be being treated fairly.

John Howard, Chairman of the Financial Services Consumer Panel said:

"There has been a worryingly slow rate of progress shown by companies in getting to grips with treating customers fairly and making a difference for customers. This is particularly true as the FSA starts to remove its detailed rules in anticipation of firms giving a better deal to consumers through the application of principles based regulation. We question whether the payment of commission can ever be compatible with Treating Customers Fairly.

"We are pleased that the FSA is highlighting its concern about progress. The FSA needs to take enforcement action at the end of its already extended deadline if firms cannot make progress of their own accord."

Notes to editors

1. The FSA established the independent Financial Services Consumer Panel in December 1998 to advise its Board on the interests and concerns of consumers and to report on the FSA’s performance in meeting its objectives. The Consumer Panel has statutory status.

2. The emphasis of the Panel’s work is on activities that are regulated by the FSA, although it may also look at the impact on consumers of activities outside but related to the FSA’s remit. More information about the Panel's work is available on our website – www.fs-cp.org.uk.

3. The Consumer Panel brings together a wide range of relevant experience. This includes financial services regulation, working with vulnerable consumers, consumer protection, consumer education, front-line money advice, legal expertise, competition policy, public policy analysis, market research and media.

4. There are currently twelve members of the Panel as listed below (for further information on individual members, see the Panel's website – www.fs-cp.org.uk)

   John Howard (Chairman)
   Adam Phillips (Vice Chairman)
   Kay Blair
   Michael Chapman
   Stephen Crampton
   Caroline Gardner

   Jenny Hamilton
   Tony Hetherington
   Nick Lord
   David Metz
   Lindsey Rogerson
   Carol Stewart