Treating Customers Fairly TCF Test Papers and Answer Sheets | Overview and Assessment Quiz | Marking Sheet | Template for FCA Applications and Authorised Firms – FCA Authorisations and Compliance

1 Test Paper Overview

Testing, assessing and training employees in the regulatory compliance rules and standards is an essential business practice to ensure compliance, evidence competency and support your staff. We have designed a range of exclusive compliance assessment quiz and answer documents, with a view to assisting regulated firms in the compliance expectations.

1.1 Assessment Quiz & Answers

Our ready-to-use question and answer assessments come with beginner, intermediate and advanced style questions on the specific compliance areas and through detailed and expertly developed answers sheets, also aim to teach as well as test. The assessments are unique in that they do not just provide yes/no answers to the questions. Our compliance experts have provided detailed, relevant and compliant answers to each question so that gaps and understanding can be filed, and staff supported.

Assessments should be a continual part of any organisation and delivered as part of induction programmes, after training and on a rolling basis as part of a standard compliance regime. These assessments allow you to evidence your compliance to the Training and Competency requirements set by regulators and enable the identification of misunderstood areas, before they become a problem.

1.2 Using the Assessment

As with all the documents, our assessments are version controlled and allow for full corporate branding.

You are free to edit and use the document however suits your business type and needs, however we would suggest printing the quiz for hard copy use and then using the answer paper to mark the assessment and discuss the answers with the employee where gaps have been identified. You should also add a copy of the assessment and any marking/evaluation logs to the employees training file for future reference and compliance evidence.

1.3 Marking Sheet

Each of the questions come with a marking guide which can be used by the employee to know how many points/answers should be given, and for the marker to score the answer correctly. At the end of the document, you will find a marking sheet to make scoring the tests easier.

2 Treating Customers Fairly Test Paper 1

You have 30 minutes to complete the quiz on Treating Customers Fairly. This quiz has been designed to test your knowledge and understanding in this compliance area. Please make sure that you read each question carefully – the marks available for each question are noted on the bottom right.

1) TCF is about?

a. Creating satisfied customers ___
b. Providing clear and transparent services or products to customers ___
c. Treating every customer in the same way ___

(1 Mark)

2) How many desired outcomes are there for TCF?

a. 5 ___
b. 8 ___
c. 6 ___

(1 mark)

3) Whose logo is this?

________________________________________

(1 mark)

4) TCF stands for?

a. Treating Consumers Fairly ___
b. Testing Customers Fairly ___
c. Treating Customers Fairly ___

(1 mark)

5) Name 3 areas of your organisation where TCF should be applied

________________________________________________________
________________________________________________________
________________________________________________________
(3 marks)

6) TCF is the practical realisation of one of the FCA’s core principles: “A Firm must pay due regard to the interests of its customers and treat them fairly.”

a. True ___
b. False ___

(1 mark)

7) Fill in the blanks of Treating Customers Fairly Outcome 3: –

‘Consumers are provided with ____________ information and kept appropriately ___________ before, during and after the point of sale’

(2 marks)

8) A customer raises a complaint with you personally. Do you: –

a. Tell them there is no point complaining because you have been through everything with them already and there are no other solutions. ___
b. Give them your regulator and Financial Ombudsman Service details ___
c. Provide them with your complaint’s procedure and full contact details ___

(1 mark)

9) A customer asks who you are and what you do. Do you?

a. Provide them with your full name, company name and explain the nature of the business and the reason for your call ___
b. Give them your first name and advise you will explain everything else as you go along ___
c. Advise that you cannot give them any details over the phone but after they have agreed to take your service you will send them everything they have requested in writing ___

(1 mark)

10) TCF is not applicable to my role and/or organisation?

a. True ___
b. False ___

(1 mark)

You have reached the end of test paper 1

3 Treating Customers Fairly Test Paper 2

You have 30 minutes to complete the quiz on Treating Customers Fairly. This quiz has been designed to test your knowledge and understanding in this compliance area. Please make sure that you read each question carefully – the marks available for each question are noted on the bottom right.

1) It is a regulatory requirement to have a TCF Officer?

a. True ___
b. False ___

(1 mark)

2) As part of the FCA’s TCF initiative, they expect firms to demonstrate that: –

(Multiple answers accepted)

a. They are integrating TCF into their business culture ___
b. At least one staff member understands TCF ___
c. They have the appropriate MI or measures in place to test whether they are treating their customers fairly including by delivering the six TCF consumer outcomes ___
e. The MI demonstrates to them and to the FCA that they are consistently treating customers fairly and delivering the consumer outcomes ___
g. Annual TCF training is given to new starters only ___
h. There are processes in place that monitor the Management Information to enable the right people to take action ___

(4 marks)

3) Fill in the blanks on the FCA’s view of Treating Customers Fairly: –

“We expect customers’ ___________ to be at the _________ of how firms do business. Customers can expect to get financial services and products that meet their _________ from firms that they can trust.”

(3 marks)

4) TCF Outcome 4 says: –

a. Where consumers receive advice, it should be suitable for the firms needs and ensure that products and services are always taken by the customer. ___
b. Where consumers receive advice, the advice is suitable and takes account of their circumstances. ___
c. Where customers receive advice, it should only be given by qualified staff who have been trained in the TCF outcomes. ___

(1 mark)

5) Ensuring TCF during customer calls, means complying with the 6 TCF Outcomes and the FCA’s requirements. List 2 things you should do during a call to meet your TCF obligations?

________________________________________________________
________________________________________________________
(2 marks)

6) Gathering and collating Management Information (MI), is an essential business practice in relation to TCF. The FCA advise that good MI should be: –

(Multiple answers accepted)

a. Accurate ___
b. Relevant ___
c. Helpful ___
d. Moderate ___

(2 marks)

7) The FCA has 3 main statutory operational objectives, what are they?

________________________________________________________
________________________________________________________
________________________________________________________
(2 marks)

8) TCF Outcome 6 says “Consumers must not face unreasonable post-sale barriers”. Which of the below is an unreasonable barrier?

a. Providing a free phone customer care number on all post-sale communications ___
b. Offering ‘Live Chat’ and Online Contact Form dedicated to post-sale queries ___
c. The post-sale customer care team can only be reached via a premium rate number ___

(1 mark)

9) Treating Customers Fairly is noted in one of the FCA’s Principles for Business?

a. True ___
b. False ___

(1 mark)

10) The FCA provides additional guidance on Treating Customers Fairly in The RPPD, which is one of its regulatory guides. Fill in the blanks below: –

The R_____________________ of P_______________ and Distributors for the Fair Treatment of C_______________(RPPD).

(3 marks)

You have reached the end of test paper 2

4 Treating Customers Fairly Answer Sheet 1

Below are the answers to the first assessment test paper; the correct answer is provided in red underneath each assessment question. We have then provided detailed information about the question and answer which should be relayed to the assessment taker where any gaps have been identified. Use the mark guidance for scoring each answer.

1) TCF is about?

b. Providing clear and transparent services or products to customers

The Treating Customer Fairly (TCF) principle has been designed to raise standards in the way that consumer credit and financial services firms carry out their business practices and processes. It was initially introduced to benefit consumers and increase their confidence in the financial services industry.

2) How many desired outcomes are there for TCF?

c. 6

Outcome 1 – Consumers can be confident that they are dealing with firms where the fair treatment of customers is central to the corporate culture
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
Outcome 3 – Consumers are provided with clear information and kept appropriately informed before, during and after the point of sale
Outcome 4 – Where consumers receive advice, the advice is suitable and takes account of their circumstances
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
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

3) Whose logo is this?

Financial Conduct Authority

The Financial Conduct Authority is a financial regulatory body in the United Kingdom, but operates independently of the UK government, and is financed by charging fees to members of the financial services industry.

4) TCF stands for?

c. Treating Customers Fairly

Treating Customers Fairly is about creating an open, transparent, fair and honest environment for customers in relation to financial services and products. It means providing only those products and/or services that are relevant and suitable for the customer, taking the time to establish what is required and what is not, ensuring that customers understand what we are providing and how it will benefit them.

Providing a product or service that meets the expectations of the customer and does what we have advised it will do and removing any post-sale barriers to enable the customer to cancel a service or raise a complaint without encountering any obstacles.

5) Name 3 areas of your organisation where TCF should be applied

MARKER NOTE: Assess the answers in relation to your organisation and the products/services that you offer. However, it should be noted that the TCF ethos should be embedded into all aspects, departments, roles and business processes and is at the heart of the organisation itself. Some areas that most organisations have in common for areas of applying TCF are:

Marketing materials and sales information
Complaint handling procedures
Offers, promotions and incentives
Scripts & communication templates
After-sales care & customer service
Staff awareness and training sessions

6) TCF is the practical realisation of one of the FCA’s core principles: “A Firm must pay due regard to the interests of its customers and treat them fairly.”

a. True

All firms are expected to comply with the FCA’s High Level Principles (PRIN), which includes principle 6 “A firm must pay due regard to the interest of its customers and treat them fairly”. This speaks directly to TCF and the FCA’s high level of expectation that firms will abide by the TCF principle and ethos throughout their organisation and in all business processes.

7) Fill in the blanks of Treating Customers Fairly Outcome 3

‘Consumers are provided with clear information and kept appropriately informed before,

during and after the point of sale’

8) A customer raises a complaint with you personally. Do you: –

c. Provide them with your complaint’s procedure and full contact details

Your company complaints procedure should have TCF at the core of its aim and should provide customers with all the information needed to raise concerns, queries and complaints.

Being transparent is the key to resolving issues before they become severe complaints and by having a clear, open and accessible complaints procedure and ensuring that staff have access to it and that they understand how, when and why to give it out to customers; you are in keeping with the spirit of treating customers fairly.

9) A customer asks who you are and what you do. Do you: –

a. Provide them with your full name, company name and explain the nature of the business and the reason for your call

Being transparent, open and clear are key factors of the TCF ethos and you should always aim to provide customers with information about who you are, what you do and why you are contacting them.

Avoid jargon, technical language or complex details that you may understand but that will undoubtedly confuse both the customer and the situation. Be patient and provide all of the information needed by the customer to assess the situation and reason for the call. Ensure that you reiterate outcomes and/or consequences and that the customer is in possession of all facts and information before they decide.

10) TCF is not applicable to my role and/or organisation?

a. False

Treating Customers Fairly is applicable and relevant to every person, role, department and business process within your organisation and staff have a duty of care to understand and embrace the TCF principles and ethos.

This is the end of the test 1 answer paper. Where you have identified any gaps or misunderstandings in an assessment, you should use the additional answers provided to teach and support the respondent. You should also scan/save a copy of the completed quiz and marking sheet and complete any assessment/evaluations forms that you use for training and development and record these in the employees training file.

5 Treating Customers Fairly Answer Sheet 2

Below are the answers to the second assessment test paper; the correct answer is provided in red underneath each assessment question. We have then provided detailed information about the question and answer which should be relayed to the assessment taker where any gaps have been identified. Use the mark guidance for scoring each answer.

1) It is a regulatory requirement to have a TCF Officer?

a. False

It is not a regulatory requirement to have a TCF Officer, however we recommend that there is at least one person who takes overall responsibility for the TCF functions within your firm. For very small firms this can be the Owner or Director and for SME’s it is possible to double up the TCF Officer role with either the Compliance Officer or Customer Service Manager roles.

For larger organisations, however, it is suggested a main role is created for a TCF officer with the potential for some delegates and/or a TCF team, as developing, implementing, maintaining and monitoring TCF within a firm gets more time consuming and complex the larger they are.

2) As part of the FCA’s TCF initiative, they expect firms to demonstrate that: –

a. They are integrating TCF into their business culture
c. They have the appropriate MI or measures in place to test whether they are treating their customers fairly including by delivering the six TCF consumer outcomes
e. The MI demonstrates to them and to the FCA that they are consistently treating customers fairly and delivering the consumer outcomes
h. There are processes in place that monitor the MI to enable the right people to take action

If you would like to provide your staff with an in-depth look at what, how and when the FCA view, govern and assess TCF in the workplace, visit their FCA Guidance Document at http://www.fca.org.uk/static/fca/documents/fsa-tcf-towards.pdf

3) Fill in the blanks on the FCA’s view of Treating Customers Fairly: –

“We expect customers’ interests to be at the heart of how firms do business. Customers can expect to get financial services and products that meet their needs from firms that they can trust.”

4) TCF Outcome 4 says: –

b. Where consumers receive advice, the advice is suitable and takes account of their circumstances.

Outcome 4: Where consumers receive advice, the advice is suitable and takes account of their circumstances.

Not all firms who are regulated by the FCA will be providing advice to their customers, however the majority will, and it is essential that any advice given is in the best interests of the customer and NOT solely the organisation’s best interest. This outcome relies heavily on the assumption that all staff working in a role that sees them directly or indirectly giving advice to customers, are fully trained, have access to the necessary information essential to their role as an advisor, have clear reporting lines laid out for them and have a program of continuous professional development for their learning and training needs.

5) Ensuring TCF during customer calls, means complying with the 6 TCF Outcomes and the FCA’s requirements. List 2 things you should do during a call to meet your TCF obligations?

MARKER NOTE: Award the marks for the answer based on the respondents understanding of the TCF outcomes and regulatory compliance. Below are TCF requirements during a call, but the answer should not be limited to the below responses.

Explain the nature of the firm and what the call was regarding
Avoid using jargon and industry slang during the call
Speak clearly and ensure you are understood by the customer throughout the call
Use active listening skills
Reiterate and/or summarise, any information that could be confusing to the customer
Advise you would send any payment arrangements in writing/agreements
Ensure you provided the customer with a service/product that suited them
Ensure that the customer understood any agreements or outcomes
Provide alternate options if applicable to the account?
Ensure that the customer is happy with the outcome of the call
Ensure everything offered was accurate and relevant

6) Gathering and collating Management Information (MI), is an essential business practice in relation to TCF. The FCA advise that good MI should be: –

a. Accurate
b. Relevant

The FCA have provided some information about MI in relation to TCF as below.

“Principles of good MI involve ensuring that information is collected during a period of business activity. It may be about customers, staff, calls, visits, meetings, sales, opinions, parts of a process, predictions etc. MI is not just numbers, quantitative data is valuable to any business, but commentary or opinions are also MI and can help provide a comprehensive, balanced view.

All information relevant to a firm, from whatever source, can be described as MI. Good MI should enable management to make good decisions, to do this, the MI should be: –

Accurate – the correct numbers with any commentary contributed by the right people.
Timely – available sufficiently quickly after the relevant business activity to enable managers to act.
Relevant – displaying what a manager can directly influence or something that they may need to escalate to someone who can take the necessary action.
Consistent – consistent on a period-to-period basis to allow managers to spot trends and make sound decisions.

There may also be MI that is produced for, or requested by, management on a particular issue or concern on an ad-hoc or infrequent basis. This approach is more cost effective if the investigation is a one-off event. In general, though, MI should be produced and monitored regularly to avoid problems rather than commissioned in response to problems.”

7) The FCA has 3 main statutory operational objectives, what are they?

Protecting Consumers
Market Integrity
Promoting Effective Competition

The FCA has 3 main statutory operational objectives and covered within each objective are their aims.

Protecting Consumers

Ensure customers are treated in a way that is appropriate for their level of financial knowledge and understanding
Be more outward looking, by engaging more with consumers and understanding more about their concerns and behaviour
Set clear expectations for firms and be clear about what firms can expect from us
Intervene early to tackle potential risks to consumers before they take shape
Be tougher and bolder, following a strategy of credible deterrence, using new powers of intervention and enforcement.

Market Integrity

The soundness, stability and resilience of the financial markets
The transparency of the price information process in those markets
Combating market abuse
The orderly operation of the financial markets
Reducing financial crime in the UK financial system

Promoting Effective Competition

To promote effective competition in the interests of consumers in the markets we regulate
To promote effective competition when addressing our consumer protection or market integrity objectives

8) TCF Outcome 6 says “Consumers must not face unreasonable post-sale barriers”. Which of the below is an unreasonable barrier?

c. The post-sale customer care team can only be reached via a premium rate number

TCF Outcome 6 relates to post-sale barriers and ensuring that whilst the introductory and sales processes within your organisation may be easy and straightforward for consumers, are the after-sales processes the same?

You must ensure that consumers are provided with multiple ways to contact you in the event that they have any post-sale questions or complaints. Remember that TCF applies to ALL regulated firms, not just those with a physical product such as an insurance policy or a mortgage. Firms such as Debt Collections agencies and DMA’s should consider post-sale to mean after they have signed up a new client or after they have set up a debtor payment plan.

Information that should be readily available to clients and consumers are telephone numbers, email addresses, your physical address, complaints procedure and any regulating bodes. These should be provided on your website and in all correspondence made to the consumer. Firms should also avoid barriers such as no-reply email addresses and premium rate only numbers.

9) Treating Customers Fairly is noted in one of the FCA’s Principles for Business?

a. True

Under the FCA’s Principles for Business, Principle 6 – Customers’ Interests, states ‘A firm must pay due regard to the interests of its customers and treat them fairly.’

10) The FCA provides additional guidance on Treating Customers Fairly in The RPPD, which is one of its regulatory guides. Fill in the blanks below: –

The Responsibilities of Providers and Distributors for the Fair Treatment of Customers (RPPD)

This is the end of the second assessment answer paper. Where you have identified any gaps or misunderstandings in an assessment, you should use the additional answers provided to teach and support the respondent. You should also scan/save a copy of the completed quiz and marking sheet and complete any assessment/evaluations forms that you use for training and development and record these in the employees training file.

6 Test Marking Sheets

Employee Name:			Date:		Test Paper 1

Question	Available Mark	Mark Awarded		Notes
#1	1
#2	1
#3	1
#4	1
#5	3
#6	1
#7	2
#8	1
#9	1
#10	1
TOTAL	13

Employee Name:			Date:		Test Paper 2

Question	Available Mark	Mark Awarded		Notes
#1	1
#2	4
#3	3
#4	1
#5	2
#6	2
#7	3
#8	1
#9	1
#10	3
TOTAL	21