The FSA's top TCF expert insists that industry communication is paramount
By Johanna Gornitzki
It is the responsibility of both providers and advisers to make sure that customers understand the products they are buying, according to Nausicaa Delfas, head of Treating Customers Fairly (TCF) at the Financial Services Authority (FSA).
Speaking at the COVER Forum, Delfas said there needed to be a good dialogue between all parties in order to "give customers a reasonable chance to make a claim".
"It is up to the firms selling the products to explain the jargon to customers," she said, and added that "consumers need to be absolutely clear about what they are covered for".
To push the industry in this direction, Delfas said the regulator has now changed gear when it comes to ensuring firms are adhering to its TCF initiative.
"By the end of December 2008, we expect all firms to demonstrate that they are delivering against the TCF outcomes," she said.
The FSA is also said to expect firms to have appropriate management information in place by March next year to test whether they are treating their customers fairly.
Complaints about claims rejected for non-disclosure is a key TCF issue the FSA will be looking at.
Many small firms are lagging behind when it comes to implementing the TCF initiative but Delfas believed they can make speedy progress.
"The FSA will publicise a range of material as well as offering more targeted help such as roadshows, which will all help small firms lagging behind," she said.
