Treating Customers Fairly has failed, says Consumer Panel

Regulation 700 x 450The Treating Customers Fairly regime has failed to deliver fair outcomes for consumers or UK taxpayers, a report from the Financial Services Consumer Panel.

A report by the Consumer Panel on banking culture states that the TCF regime has failed and should be replaced by a statutory duty of care.

“While the FCA’s ‘roadmap’ of rules, apparently provides clear guidelines for firms, in the absence of a moral compass, firms have too often failed to follow it,” states the report.

“The banker/customer relationship needs special recognition and protection by the adoption of a statutory duty of care to be owed by bankers to their customers.”

The FSCP says that the duty of care would ensure financial services providers avoid conflicts of interest and work in the best interests of their customers.

“It would also engender long-term cultural change in financial services providers, bringing much-needed clarity to the rules governing the relationship between firms and their customers,” the report adds.

The banking culture report from the FSCP also states that there are “significant failings” in the culture at UK banks, and that trust in the financial services industry needs to be restored.

The FSCP has previously called for a duty of care to be incorporated in the Financial Services & Markets Act. It states that rules should be created to determine what a reasonable duty of care would be.