Treating customers fairly

What is TCF?

The Financial Services Authority (FSA), as part of its 11 principles for business, has a requirement for firms to 'pay due regard to the interests of its customers and treat them fairly'. The FSA requires that treating customers fairly (TCF) should be part of every authorised firm's day-to-day operations and that responsibility for TCF lies with the firm's senior management.


How does it affect customers?

The FSA has defined six outcomes for consumers summarising what its initiative aims to achieve. These are set out below.


Outcome 1: Consumers can be confident they are dealing with firms where the fair treatment of customers is central to the corporate culture.


Outcome 2: Products and services marketed and sold in the retail market are designed to meet the needs of identified consumer groups and are targeted accordingly.


Outcome 3: Consumers are provided with clear information and are kept appropriately informed before, during and after the point of sale.


Outcome 4: Where consumers receive advice, the advice is suitable and takes account of their circumstances.


Outcome 5: Consumers are provided with products that perform as firms have led them to expect and the associated service is both of an acceptable standard and as they have been led to expect.


Outcome 6: Consumers do not face unreasonable barriers after a sale imposed by firms to change product, switch provider, submit a claim or make a complaint.


New Star's commitment

We are committed to treating our customers fairly on a consistent basis in everything that we do.  This philosophy is embedded in our culture, in our systems and in our controls.  Under the watchful eye of senior management, our staff aim to meet all the objectives of TCF throughout the product life cycle.  This starts with product development and extends through brochure production and advertising to the provision of information and service before sale, during sale and after sale.

 

We recognise that TCF is an ongoing process, not a short-term project.  We build TCF into our processes and strategies and have put management information systems in place so that our board can monitor our behaviour.  We measure clarity of printed information twice yearly by unbiased anonymous survey and fairness and clarity of advertisements by ongoing survey.  If you would like to provide feedback on our treatment of customers, please email us at tcfdirect@newstaram.com.


If you would like more information on the FSA, its principles and its treating customers fairly initiative, please visit the FSA website.


New Star Asset Management is not authorised to give investment advice and only provides information on New Star's products. Outcome 4 of the FSA's TCF initiative is, therefore, of limited relevance to New Star.