Lack of clarity in the FSA's ‘treating customers fairly' rules has sparked concerns that the regulator will require firms to treat customers "generously" rather than just fairly, according to the ABI.

Martin Shaw, director of the raising standards scheme at the ABI, said: "I don't rule out the possibility of some problems, as treating the customers fairly is so ill-defined.

This is a learning curve, and as a definition becomes more solid companies are concerned that it may not be about treating companies fairly, but generously.

The FSA currently has a working group of various financial trade bodies - including the ABI and Biba - looking at the issue.

Shaw said the main issues for the ABI were complaints handling and product selling.