FSA issues guidance on TCF for investment groups

Providers must consider investors' risk profile, overall portfolio and time horizon as part of produ...

Providers must consider investors' risk profile, overall portfolio and time horizon as part of product design under treating customers fairly (TCF), according to FSA guidance. Groups will also be expected to consider and, if appropriate, limit product distribution to direct retail customers or via supermarkets and wraps. Investment firms must be able to show they have adopted TCF policies by March 2008 or face sanctions from the FSA. The regulator has just published more detailed guidelines on good practice to help firms implement the rules. This guide emphasises the need to identif...