The FSA's publication of a deadline for firms to demonstrate that they are incorporating the principle of treating customers fairly into their business has been welcomed by the Financial Services Consumer Panel.

The Panel believes that in too many financial services firms, the benefits of the principle are not yet reaching the consumer. The culture change required by 'Treating Customers Fairly' is not filtering down to the staff who really control the relationship with customers on a day to day basis. There has been recent evidence of this:

• In June 2006, the FSA published research showing that in many cases, mortgage documents from firms are not up to scratch¹;
  
  
• Today the FSA is also publishing information about firms failing to give advice properly on mainstream products²;
  
  
• Last week the Consumer Panel published research showing a disturbing level of non compliance in financial advertising.³

The FSA says that senior managers have signed up to the principle of TCF. But firms' advertising, documents, and advice giving is at the heart of the consumer interface with financial services firms, and all these must be improved.

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

"For consumers to have confidence in the financial services industry, they need to be able to trust that the adverts that they see, the documents they read, and the advice they are given are all clear, fair and not misleading. That is what 'treating customers fairly' should be about. It is not good enough just to 'talk the talk' in head office. Financial services firms must 'walk the walk' in the high street as well."

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