Rebuilding Trust : TCF And The Financial Planner

The financial services industry and all its players have a responsibility to build and, in some cases, rebuild customers’ trust in the industry. Treating Customers Fairly (TCF) is both an outcomes-based and a results-based regulation, which will require all Financial Services Providers, including financial planners, to look closely at how they treat their clients. The Financial Services Board (FSB) is gradually introducing TCF into its regulatory and supervisory frameworks. Planners will need to not only act in their clients’ interest at all times but also provide evidence that they are doing so. So, how do you practically go about delivering the required outcomes?

Myths about TCF

• TCF is the job of the compliance officer.

• TCF can be outsourced to a third party.

• A satisfied client means you are TCF-compliant.

Not true. TCF has to be at the heart of your business and cannot be the responsibility of one person. A client can be very happy at the point of advice, but not necessarily treated fairly. Think long term – what happens when he or she retires or disinvests? Will their expectations be met?