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Treating Customers Fairly
BDS Mortgage Group is committed to putting customers at the centre of its strategy. Read our policy statement from Phil Jay, Managing Director.
As a BDS Network Member, you are required to share in our values and philosophy to ensure that we meet our collective objectives.
The TCF (‘treating customer fairly’) principle aims to raise standards in the way firms carry on their business by introducing changes that will benefit consumers and increase their confidence in the financial services industry.
Specifically TCF aims to:
- help customers fully understand the features, benefits, risks and costs of the financial products they buy; and
- minimise the sale of unsuitable products by encouraging best practice before, during and after a sale.
The FSA has outlined six core consumer outcomes that it wishes to see as a result of the TCF initiative. These are:
- Consumers can be confident that they are dealing with firms where the fair treatment of customers is central to the corporate culture.
- Products and services marketed and sold in the retail market are designed to meet the needs of identified customers and are targeted accordingly.
- Consumers are provided with clear information and are kept appropriately informed during and after the point of sale.
- Where customers receive advice, the advice is suitable and takes into account their personal circumstances.
- Customers are provided with products that perform as firms have led them to expect and associated service is both of an acceptable standard as they have been led to expect.
- Consumers do not face unreasonable post sales barriers imposed by firms to change product, switch provider, submit or make a compliant.
By the 31st December 2008 firms must have embedded TCF into their business with the ability to demonstrate that they are consistently treating customers fairly.
What does this mean for you?
The management information you have in place must allow you to measure your firm's ability to meet the requirements of the FSA's six customer outcomes and more importantly meet the needs of your customers.
Key Fairness Indicators – what you should be able to evidence through your own management information.
| Key Driver |
Indicator |
| Leadership |
Fair treatment of customers is central to the behaviour and values of the firm, and management are able to explain what the fair treatment of customers means for their firm and communicate this to their staff. |
| Business Decisions |
The firm aligns its decisions about business priorities with the fair treatment of customers. |
| Controls |
The firm has controls proportionate to the size and
complexity of the business, including management
information, that aim to ensure and demonstrate the
fair treatment of customers.
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| Recruitment, Training & Competence |
Management make positive behaviours and attitudes to the fair treatment of customers a key criterion in the selection of staff. The results of effective training and the maintenance of staff knowledge and behaviours can be observed. Management develop their staff in the fair treatment of customers, identifying and acting on poor performance and rewarding good performance. |
| Reward |
Management operate a reward structure that is
transparent and recognises the fair treatment of
customers.
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Measuring your understanding and performance.
In order to help you review your management information and carry out a self-assessment of your firm's progress with TCF you can use the "BDS Satellite Partner TCF Management Information Form". This can be downloaded below:
Downloads
Useful Links
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