OUTCOME 5 Customers are provided with products that perform as firms have led them to expect, and the associated service is both of an acceptable standard and what they have been led to expect. related to Outcome 5 Staff do not understand their obligations towards customers No monitoring of the impact of changes in the environment on products and customers or no action taken to mitigate risks when such changes occur Customers are not informed of the costs or risks of certain action or non-action on their part, which could impact on their benefit expectations being met Customers are not informed of options available to meet changes in requirements during the product’s life cycle Customer confidentiality is compromised Examples of good practice for Outcome 5 Some investment managers communicate economic developments and how to factor these into investment decisions to customers Pension fund administrators keep trustees informed of regulatory and environmental developments to enable them to take informed decisions regarding the interests of their fund members Some short-term insurers and intermediaries keep customers informed of how to reduce the risk of falling prey to new forms or increased levels of crime including – through industry and general consumer media publications Developing a database of third party service providers that will track and enable customers and intermediaries to monitor quality and cost effectiveness of different providers Carrying out a survey to measure customer satisfaction in respect of the service provided by each claim related service provider after completion of every claim or using shopping” to review third party customer service levels “mystery Reviewing existing service level and binder agreements to ensure that they incorporate delivery of TCF and enable TCF monitoring Frequent sometimes time” - monitoring of customer satisfaction with service – “real across arrange of servicing touch points, and then using feedback from these processes to drive process reviews in a structured manner Review and analysis of existing products to ensure they remain suitable to the market Investment managers tracking investor behavior to identify risky trends (e.g. frequent portfolio switching) and using this to identify a need for improved investor and / or intermediary communication Investment product providers regularly highlighting key responsibilities to customers, such as the need to review investment goals, annuity income levels, risk profiles, etc OUTCOME 6
OUTCOME 5 Customers are provided with products that perform as firms have led them to expect, and the associated service is both of an acceptable standard and what they have been led to expect. related to Outcome 5 Staff do not understand their obligations towards customers No monitoring of the impact of changes in the environment on products and customers or no action taken to mitigate risks when such changes occur Customers are not informed of the costs or risks of certain action or non-action on their part, which could impact on their benefit expectations being met Customers are not informed of options available to meet changes in requirements during the product’s life cycle Customer confidentiality is compromised Examples of good practice for Outcome 5 Some investment managers communicate economic developments and how to factor these into investment decisions to customers Pension fund administrators keep trustees informed of regulatory and environmental developments to enable them to take informed decisions regarding the interests of their fund members Some short-term insurers and intermediaries keep customers informed of how to reduce the risk of falling prey to new forms or increased levels of crime – including through industry and general consumer media publications Developing a database of third party service providers that will track and enable customers and intermediaries to monitor quality and cost effectiveness of different providers Carrying out a survey to measure customer satisfaction in respect of the service provided by each claim related service provider after completion of every claim or using “mystery shopping” to review third party customer service levels Reviewing existing service level and binder agreements to ensure that they incorporate delivery of TCF and enable TCF monitoring Frequent – sometimes “real time” - monitoring of customer satisfaction with service across arrange of servicing touch points, and then using feedback from these processes to drive process reviews in a structured manner Review and analysis of existing products to ensure they remain suitable to the market Investment managers tracking investor behavior to identify risky trends (e.g. frequent portfolio switching) and using this to identify a need for improved investor and / or intermediary communication Investment product providers regularly highlighting key responsibilities to customers, such as the need to review investment goals, annuity income levels, risk profiles, etc OUTCOME 6
TCF_Risks_and_Good_Practices.docx