Unit 2 / Section 3 - Customer Conduct Flashcards
What 4 things should firms consider when designing pricing structures for products?
1) what charges are there associated with a particular product?
2) as a consumer, how will the charges impact on their finances?
3) are the charges fair and transparent?
4) do the charges mean that, although the product is the most suitable one available, consumers choose to use a different provider which has a poorer reputation for treating its customers fairly?
What are 3 ways vulnerability may become evident?
1 ) Inability to access all available distribution channels (e.g. elderly customers less likely to be able to access Internet-only products and services).
2) Difficulties in comprehension of the market (for example mental capacity issues or difficulties in understanding financial language).
3) Circumstances-related vulnerability (such as life-changing events like long-term illness or bereavement).
What are 4 ways of building trust, building a relationship for life?
- Excellent service: earning trust starts with giving great service.
- Consistency: should apply to every aspect of what a firm does.
- Transparency: customers will appreciate and admire the company more when they admit to a mistake.
- Honesty: firms should not try to cover up their errors, but must address the issue directly, explain how they will handle it and share what steps are being taken to prevent the errors from recurring.
What is TCF Customer Outcome 1 ?
TCF Outcome 1:- Consumers can be confident they are dealing with firms where the fair treatment of customers is central to the corporate culture.
What is TCF Customer Outcome 2 ?
TCF Outcome 2:-Products and services marketed and sold in the retail market are designed to meet the needs of identified consumer groups and are targeted accordingly.
What is TCF Customer Outcome 3 ?
TCF Outcome 3:- Consumers are provided with clear information and are kept appropriately informed before, during and after the point of sale.
What is TCF Customer Outcome 4 ?
TCF Outcome 4:- Where consumers receive advice, the advice is suitable and takes account of their circumstances.
What is TCF Customer Outcome 5 ?
TCF Outcome 5:- Consumers are provided with products that perform as firms have led them to expect, and the associated service is of an acceptable standard and as they have been led to expect.
What is TCF Customer Outcome 6 ?
TCF Outcome 6:- Consumers do not face unreasonable post-sale barriers imposed by firms to change product, switch provider, submit a claim or make a complaint.
In what 6 ways should the fair treatment of customers be addressed throughout the product life cycle?
1) product design and governance
2) identifying target markets
3) marketing and promoting the product
4) sales and advice processes
5) after-sales information and services
6) complaint handling
What is Principle 1 of the FCA’s Principles for Business?
A firm must conduct its business with integrity.
What is Principle 2 of the FCA’s Principles for Business?
A firm must conduct its business with due skill, care and diligence.
What is Principle 3 of the FCA’s Principles for Business?
A firm must take reasonable care to organise and control its affairs responsibly and effectively with adequate risk management systems.
What is Principle 6 of the FCA’s Principles for Business?
A firm must pay due regard to the interests of its customers and treat them fairly.
What is Principle 7 of the FCA’s Principles for Business?
A firm must pay due regard to the information needs of its clients, and communicate information to them in a way which is clear, fair and not misleading.
