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Treating Customers Fairly – What is TCF?

Fair treatment of customers underpins the General Code of Conduct for financial services providers (FSPs) and Representatives. While the principles embodied within the outcomes may already form part of the culture of an FSP’s business, the demonstration of the outcomes may not yet be in place and changes to some business processes may be required, and in some cases new processes may need to be implemented. We provide support by helping FSPs understand the requirements and run workshops to help businesses align their processes with both the Financial Advisory and Intermediary Services Act (FAIS) and Treating Customers Fairly (TCF) framework. Identifying TCF gaps and providing solutions that best suit the FSP also forms part of the compliance visits.

What is Treating Customers Fairly?

TCF is a regulatory framework set by the Financial Sector Conduct Authority (FSCA). This framework governs the way an FSP business conducts daily dealings with its clients ensuring that all clients are treated fairly, during all stages of the product life-cycle and advice process.

The TCF framework is built on principles that help drive an FSPs business conduct towards a set of six outcomes aptly termed TCF outcomes. An FSP therefore needs to move toward a place where their business practices achieve these outcomes and eventually become an inherent part of all areas within the business. At the same time, all FSPs need to demonstrate to regulators that they adhere to the TCF principles and treat their customers fairly. Documenting the implementation of new business processes or the change to existing practices therefore becomes a fundamental part of a businesses’ TCF journey.

What is the FSCA looking to achieve through the TCF outcomes?

Placing clients at the center of your business and aiming to achieve the six TCF outcomes in the fullest sense ensures a win-win situation for everybody. The TCF outcomes, which should already be entrenched within an FSP, are defined by the FSCA as follows:

  • TCF Outcome 1 – Customers must feel confident that they are dealing with an institution where TCF is at the core of their culture.
  • TCF Outcome 2 – Products and services in the retail market which are sold and marketed are designed according to the needs of the customers identified and targeted accordingly.
  • TCF Outcome 3 – Customers are provided with clear information and kept appropriately informed before, during and after point of sale.
  • TCF Outcome 4 – Advice is suitable and according to the customer’s circumstances.
  • TCF Outcome 5 – Service is of an acceptable standard and products perform as customers have been led to expect.
  • TCF Outcome 6 – Customers do not face unreasonable post-sale barriers when they want to change a product, switch providers, submit a claim or make a complaint.

TCF Principles

The TCF principles are encompassed in the TCF outcomes and in many ways are also embodied in the General Code of Conduct. Although these principles may already form part of your business strategy, they are linked to outcomes that focus specifically on the fair treatment of the customer. The principles can be defined as follows:

  • TCF Outcome 1 – Principle of Culture & Governance
  • TCF Outcome 2 – Principle of Product Suitability
  • TCF Outcome 3 – Principle of Disclosure
  • TCF Outcome 4 – Principle of Suitable Advice
  • TCF Outcome 5 – Principle of Performance and Service in line with expectations
  • TCF Outcome 6 – Principle of Claims, Complaints & Changes

The TCF principles are being incorporated by the FSCA into its regulatory and supervisory frameworks on an incremental basis. This approach will form a fundamental part of the new Financial Sector Conduct Authority (FSCA).

The FSCA provides guidance regarding its Treating Customers Fairly expectations. However, businesses are expected to identify ways in which they can integrate these principles in all areas of the business to ensure that the desired outcomes are achieved. Incorporating TCF in your business ensures that you comply with regulation and in turn results in fewer complaints from clients. Clients who are treated fairly are more likely to remain loyal clients and in turn reward your business.

For further reading on how to integrate TCF in your business, click the links below:

For regulatory discussion papers, notices and announcements about TCF, click here.

Webinar: Masthead can help your business achieve the TCF outcomes

With an increased focus from the FSCA for FSPs to deliver the desired TCF outcomes to clients, our Treating Customers Fairly – How to Successfully Embed TCF Outcomes in your FSP webinar will give you practical guidance on how to incorporate the TCF outcomes in your FSP and how to demonstrate this integration to the FSCA, ultimately improving the experience for your clients.

Attend our webinar where we will provide you with a good understanding of the six TCF outcomes, the areas within your FSP that require TCF implementation, how to implement the outcomes, and the types of Management Information needed to demonstrate integration into your FSP.

Register for this webinar here or contact your nearest Masthead Regional Office for assistance.

If you would like to arrange training specifically for your business, please contact your nearest Masthead Regional Office.

What attendees had to say

“The facilitator that presented the Treating Customers Fairly – How to Successfully Embed TCF Outcomes in your FSP webinar was well prepared and used relatable anecdotes, making the webinar interesting to listen to.”

– Elodie Lawrenz | Bingham Insurance Brokers CC


A national supplier of risk management services to independent financial advisors and other licensed financial service providers (FSPs). Established in 2004, we help our clients overcome their risk management challenges so they can grow and thrive in an increasingly regulated industry. Providing professional guidance and practical support, our team of specialists is passionately committed to delivering tangible solutions.

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