Hi, There's a sentence of core reading on the bottom of pg 12 chapter 12: "In the normal day-to-day management of a firm, TCF is virtually synonymous with equity" Please can someone explain to me how this is so? Thanks.
TCF - Treating Customers Fairly - look at the last word. Fair could be said to being equitable. Ie giving whats due to all classes of policyholder on a consistent basis, without preferential treatment
Yes, equity means fairness in this sense. So if policyholders are treated equitably then TCF should be met. Expanding on this a little we might say that policyholders should be treated in an equitable manner between other policyholders and shareholders. This does not mean that all groups should be treated identically. Chapter 12 Section 4.3 gives the 6 consumer outcomes that the FSA wants TCF to achieve for consumers.
