The FSA's 'Treating Customers Fairly' (TCF) Initiative: What is So Good About It and Why It May Not Work

Abstract

This article examines the Financial Services Authority FSA's 'Treating Customers Fairly' (TCF) initiative as a case study of a regulatory strategy that aims to stimulate the self-regulatory capacity of the regulated population to advance socially desirable goals - in this particular case, fair treatment for customers. It considers the development and nature of TCF and notes some difficulties that jeopardize its overall effectiveness. Parts one and two of the article consider the development and nature of TCF, while part three examines its appeal. Part four provides an overview of some problematic aspects of the FSA's initiative. The conclusion draws together the main threads of the analysis and considers the future of TCF and, more generally, consumer protection in the United Kingdom's system of financial regulation. The aim is to make a modest contribution to the debate about the proper direction of the present reform of financial regulation. © 2011 The Author. Journal of Law and Society © 2011 Cardiff University Law School.