The Treating Customers Fairly (TCF) initiative may be responsible for an increased level of uncertainty in making Professional Indemnity (PI) claims, it has been warned.

Research conducted by law firm Reynolds Porter Chamberlain found that 40 per cent of all enforcement by the Financial Services Authority (FSA) is now derived from breaches of TCF.

This compares with a figure of 11 per cent in the previous year, according to the figures.

Robbie Constance, a solicitor with the firm, suggests that the percentage could rise still further as there is doubt as to how strictly the Financial Ombudsman Service (FOS) will interpret the regulations.

"The FOS does not work as clearly as a court of law - there is still substantial uncertainty as to how they will deal with TCF," he claims.

"By refusing to define or provide guidelines on how to implement TCF, the FSA is causing a headache for firms," Mr Constance adds.

The British Insurance Brokers' Association urges firms to set out a clear written record of their responsibilities to clients in order to support their defence against any subsequent PI claim which may be brought against them under the terms of TCF.

Robert Bass, Claims Director at PYV, adds: "Although an excellent concept, TCF is a nebulous principle which is, to some extent, open to interpretation. Applying the principle may not always be straightforward and great care must be taken to ensure your client's interests are best served and the potential for claims minimised."