TCF and Principles-based Regulation :

To meet the optimum level to treat the Customers fair, TCF initiative is the principle-based approach to regulation. The principle based approach helps to align good business practice in firms and market. TCF Principles meets with our won statutory objectives. Instead of framing new rules as part of the TCF initiative, the firm’s senior management can focus on the principles and the outcomes for consumers which have to be achieved.

TCF initiative have used example based approach to improve the fair treatment like , publishing case studies and of statements of good and poor practice, to help firms to interpret the meaning of relevant principles which facilitates easy understanding.

The Principles are themselves rules. some detailed rules will remain and compliance with them will remain an important aspect of treating customers fairly. More principles-based approach poses challenges for the staff as well as for firms. In particular, it is important that the supervisors have the tools they need to help facilitate firms’ efforts to implement TCF and to form the types of judgement that more principles-based regulation requires.

On the basis of TCF initiative, FSA have imposed a number of penalties in relation to inadequate system and controls, misselling, poor handling of complaints etc. FSA will take enforcement action against firms if there is significant risk to customers and improper attempt to deliver on TCF.

Along with FSA, the office of the Fair trading also working towards the mission of making markets to work well for customers.