The Consulting Consortium Launches TCF Frameworker July 2008
Self-Assessment Tool Set To Accelerate Adviser’s Ability To Master TCF Before December
London, July 2008 - The Consulting Consortium today announces the launch of a self assessment version of the TCF Frameworker, a unique diagnostic tool to help advisers measure their progress against the six consumer outcomes identified by the Financial Services Authority (FSA) as crucial to complying with Treating Customers Fairly (TCF) standards.
This new self assessment version of the system, developed as a joint venture with the system’s originators, TCF Index, has been designed to assist financial services firms in swiftly and easily assessing their TCF performance and gathering their management information. This will ensure that they can accurately and quickly make any highlighted business changes before the December deadline for embedding TCF.
Using the Frameworker, firms will be able to self-assess their performance against a total of 106 key points of review, including sales procedures, the clarity of information provided to customers and record keeping. The self-assessment process is the most comprehensive available to UK advisers and enables them to analyse the root causes of compliance problems, not just the symptoms. In addition, its acts as a repository for holding TCF evidence/information and provides a TCF heatmap to Senior Management.
Figures recently revealed by the FSA confirmed that only 13 per cent of firms assessed met its March deadline for TCF, which demanded firms had management information systems in place to enable them to demonstrate the fair treatment of customers. The FSA has stated that it will take strong action against firms who fail to meet December final deadline for TCF compliance.
Commenting on the launch, Joanne Smith, Managing Director of The Consulting Consortium, said: "The FSA is deadly serious when it comes to enforcing TCF and firms can't afford to bury their heads in the sand and hope the issue of compliance will simply go away."
Joanne Smith continues: "Many firms are still confusing customer satisfaction with treating customers fairly. This isn't an acceptable measure as the majority of consumers are unlikely to realise they've received flawed advice.
"With the launch of the TCF Frameworker, we're offering firms of all sizes a proactive and very reliable means of getting to the fundamental causes of their compliance shortcomings rather than having to rely on reacting when problems come to light later.
"In the meantime, firms also need to ensure they thoroughly review every piece of TCF guidance they receive from the FSA in the coming months."
Meanwhile, research conducted by TCF Index in May 2008 reveals some of the key challenges facing firms as they battle become TCF compliant:
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45% of respondants say their firm is lagging behind in delivering to the year end deadline.
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66% admit that TCF arrangements are modified when there is a serious risk to profits.
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32% state that their senior management has little involvement with the firm’s TCF initiative, despite clear advice from the FSA that senior management should be leading the culture change to put TCF centre stage.
Chris Harvey, Joint Managing Director, TCF Index, commented:
“We are delighted to be partnering with The Consulting Consortium on this venture. Our TCF Frameworker has proved invaluable for companies in making a step change in their TCF performance. This self assessment version will enable advisers to make rapid progress on TCF and start using TCF as a source of competitive strength.”
Notes to Editors
About The Consulting Consortium
Founded in 2000, The Consulting Consortium is a regulatory consultancy which provides advice and guidance on activities regulated by the Financial Services Authority and, in particular, the application of the FSA's regime on financial services products.
With offices in London and Yorkshire, The Consulting Consortium's consultants offer innovative, fully FSA compliant and long term solutions to client's individual regulatory scenarios. The Consulting Consortium's sister company, TCC Recruit, specialises in recruiting staff for regulatory compliance, risk and corporate governance positions.
About TCF Index
TCF Index Limited is devoted to all aspects of Treating Customers Fairly (TCF) and aims to be a natural port of call for any firm aspiring to good practice under the TCF principles.
TCF Index offers a range of TCF Frameworkers, change programmes, coaching services and research to help companies use TCF positively for their business
TCF Index is the brainchild of Brunswick MCL Limited, which has a strong 20 year track history of marketing and management consultancy in retail financial services. TCF Frameworker is a trademark of TCF Index Ltd
For further information:
Stephen Finch / Stuart McClelland
Weber Shandwick Financial
Tel 020 7067 0705 / 020 7067 0729
sfinch@webershandwick.com / smcclelland@webershandwick.com