Continued underperformance used as TCF trigger under JPM proposals

Sub-benchmark fund performance over a set number of quarters could serve as a TCF assessment trigger, JPMorgan has claimed.

In a treating customers fairly report from the group, it suggests advisers should set targets for TCF outcomes, record the level reached and define the action taken if targets are not met. Under its proposals, advisers would inform clients of this underperformance and suggest alternative products, as well as interrogate the provider on the reason for the downturn. JPM said this meets the FSA's TCF outcome five, which requires consumers to be provided with products that perform as firms have led them to expect. Other suggested benchmarks centre on products cancelled for suitability ...