Regulatory AlertsCP15/24: Cash savings remedies
The Financial Conduct Authority published CP15/24 to summarize stakeholder feedback on its proposed remedies for the cash savings market study and outline its implementation strategy. The regulator intends to consult on rule changes designed to improve firm disclosure and facilitate account switching, while also preparing to publish data on the lowest interest rates offered by large firms. Additionally, the FCA plans to report on Randomised Controlled Trials testing other remedies in early 2016 and invites voluntary participation in the 'sunlight' remedy data collection.
In this paper we summarise the feedback we received on the proposed remedies from our cash savings market study and how we intend to take these proposals forward.
Why are we publishing this paper?
In January 2015 we published the final findings of the cash savings market study . We found that the cash savings market is not working well for many consumers and proposed remedies in four areas: disclosure; switching savings accounts; convenience of saving with different providers; and transparency of interest rates paid to longstanding customers.
We received responses from a range of stakeholders on our proposed remedies. Generally these proposals were well-supported. This document summarises the feedback we received on our proposed remedies and how we intend to take these proposals forward. In particular we are consulting on rule changes to improve firm disclosure and make switching easier.
Who is this paper aimed at?
This paper affects all active and potential participants in the cash savings market as well as those with an active interest in this market. This will include providers of cash savings products as well as intermediaries such as price comparison websites and those providing account aggregation services.
CP15/24: Cash savings remedies (PDF)
What are the next steps?
The consultation period ended on 12 October. Before the end of 2015, we aim to publish:
a Feedback Statement and Policy Statement following this Consultation Paper
information on the lowest interest rates paid by a large number of firms on easy access cash savings accounts and easy access cash ISAs (the 'sunlight' remedy).
The sunlight remedy (to be published initially on a six-monthly basis) will apply to firms above a certain size. These firms will now have received an information request. Any firms offering easy access cash savings accounts and easy access cash ISAs that have not received the information request but that would like to be included on a voluntary basis should contact cashsavings@fca.org.uk by 9 November 2015 .
We plan to consult on those remedies we are testing through Randomised Controlled Trials (RCTs), and report on those trials, in early 2016.
Want to find out more?
For more information see:
Cash savings market study
Optimisa Consumer Research
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