Another key principle of the FCA regime

Another key principle of the FCA regime - and one that all regulated firms must follow in all their consumer credit activities where the Consumer Duty does not apply (for example when dealing with business customers)- is Principle 6 “a firm must pay due regard to the interests of its customers and treat them fairly”.

This is commonly referred to as Treating Customers Fairly or ‘TCF'. The FCA expects firms to put the well-being of their customers at the very heart of how they run their business. A firms approach to TCF helps inform the FCA's view of their potential conduct risk.

The FCA has published six ‘consumer outcomes' here to help explain how firms can demonstrate compliance with TCF, along with examples of good and poor practice. The six outcomes are:

Outcome 1

Fair Treatment

Consumers can be confident that they are dealing with firms where the fair treatment of customers is central to the corporate culture.

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Outcome 2

Products designed to meet needs

Products and services marketed and sold in the retail market are designed to meet the needs of identified consumer groups and are targeted accordingly.

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Outcome 3

Clear information

Consumers are provided with clear information and are kept appropriately informed before, during and after the point of sale.

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Outcome 4

Suitable advice

Where consumers receive advice, the advice is suitable and takes account of their circumstances.

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Outcome 5

Products perform to expectations

Consumers are provided with products that perform as firms have led them to expect, and the associated service is of an acceptable standard and as they have been led to expect.

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Outcome 6

No unreasonable post sale barriers

Consumers do not face unreasonable post-sale barriers imposed by firms to change product, switch provider, submit a claim or make a complaint.

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