10.9 Complaints
It has been identified that customers are unfairly treated as a result of poor decisions made by complaint handlers. Complaint handling can be a good indication of a financial services provider’s inclination to be fair and objective in its dealing with customers. As part of TCF you need to be able to show: That you […]
10.8 Claims Handling
Financial services providers must handle claims fairly and consistently. Lack of clear processes often leaves the claimant in an uncertain position. For example, there may be no formal acceptance and tracking of a claim. Upon query of progress regarding a claim, the claimant may simply be informed that there is no claim. Financial services providers […]
10.7 After-Sales Service
Financial services providers must ensure that the after-sales services meet the requirements of the TCF initiative. Customers must be handled fairly in all aspects of the after-sales service, including providing after sales information, collection of premiums and on-going service. Financial service providers must also monitor and respond to changes in the wider environment that may […]
10.6 Point-of-Sale
Representatives need to provide clear and fair information to enable customers to make informed decisions about transacting with the financial services providers, its products and services. This means that product risks, commitments, limitations and charges must be transparent. Disclosure around bundled products must enable customers to understand the different components of the bundle. Financial services […]
10.5 Advice
The Financial Sector Conduct Authority emphasises the need to embed TCF into the sales process by providing clear information and suitable advice before, during and after point of sale. Correct and appropriate sales benefit both the organisation and the customer, leading to- A fairer deal for customers. Reduced fall-out rates. Increased customer loyalty. Customers recommending […]
10.4 Promotion and Marketing
Central to the theme of TCF is that promotional material should adhere to the following stipulations: Be clear, fair and not misleading. Enable the customer to balance potential reward against risk. Target the appropriate audience. The Financial Sector Conduct Authority Baseline Survey on Consumer financial literacy levels found lower levels of financial understanding among 18 […]
10.3 Product and Service Design
Products and services should be designed and developed for specific target markets, based on a clear understanding of the likely needs and financial capability of each customer group. Products and contracts should be frequently reviewed with the use of management information to assess the fairness of these, for example the claims success ratio of insurance […]
10.2 The Product Life Cycle
The Financial Sector Conduct Authority defines the product life style cycle as follows: Product and service design Promotion and marketing Advice Point-of-sale After-sales service Complaints The outcomes of the TCF approach should thus be apparent in every phase of the product life cycle, as illustrated in the Figure below. The life cycles of a product […]
10.1 Introduction TCF
TCF requires financial services providers to consider their treatment of customers at all stages of their relationship with the customer, from product design and marketing, through to the advice, point-of-sale and after-sale stages. Financial services providers are ultimately required to demonstrate, through management information and monitoring, that they are consistently treating customers fairly throughout the […]
9.6 Conclusion
Having the right management information is essential for financial services providers in meeting the desired TCF outcomes. TCF management information will increasingly be the focus of supervisory conversations and reporting.