FCA: Treating Customers Fairly—essentials

The following Financial Services practice note provides comprehensive and up to date legal information covering:

  • FCA: Treating Customers Fairly—essentials
  • The Principles for Businesses—Principle 6
  • All firms need to consider how the TCF concept is relevant
  • FCA reviews relating to TCF
  • TCF and thinking beyond Principle 6
  • TCF outcomes
  • Failure to observe TCF standards
  • Other initiatives

FCA: Treating Customers Fairly—essentials

BREXIT: 11pm (GMT) on 31 December 2020 (‘IP completion day’) marked the end of the Brexit transition/implementation period entered into following the UK’s withdrawal from the EU. Following IP completion day, key transitional arrangements come to an end and significant changes begin to take effect across the UK’s legal regime. This document contains guidance on subjects impacted by these changes. Before continuing your research, see: Brexit and financial services: materials on the post-Brexit UK/EU regulatory regime.

The Principles for Businesses—Principle 6

The Financial Conduct Authority's (FCA) Principles for Businesses are a general statement of the fundamental obligations of firms under the regulatory system. Principle 6 requires that firms regulated by the FCA must pay due regard to the interests of customers and treat them fairly (see PRIN 2.1.1 R). This requirement covers those firms that are regulated only by the FCA as well as the conduct requirements of firms that are also regulated for by the Prudential Regulation Authority.

TCF is a concept that the FCA inherited from its predecessor, the Financial Services Authority (FSA). It remains a fundamental part of the expectations the FCA has in relation to firms’ conduct. Simply put it is code for the expectation that firms place their customers' well-being at the centre of decision-making when running their business.

The current regulatory structure (in which the FCA has a specific objective to protect

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