FCA: Treating Customers Fairly—essentials
FCA: Treating Customers Fairly—essentials

The following Financial Services guidance 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

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 consumers) places greater emphasis on Principle 6 and the concept of TCF. The FCA has made it clear that all firms need to pay greater attention to the impact of their actions on consumers.

The FCA believes that customers need to be able to expect to get financial services and products that meet their needs. It follows that firms are expected to differentiate in their offerings to different types of