In January 2015, we published the final findings of our cash savings market study and our proposed remedies. The final findings set out our conclusions on the effectiveness of competition in the cash savings market. Our proposed remedies, on which we are seeking comments, set out how we intend to intervene in the market to make competition work better for consumers.
We focused on interest-bearing cash savings accounts. We covered seven main types of savings accounts – easy access accounts, fixed term bonds, cash Individual Savings Accounts (ISAs) with no term, fixed term cash ISAs, notice accounts, children’s accounts and regular savings accounts.
We gathered evidence by collecting and analysing data from firms, requesting views from stakeholders, commissioning a consumer survey, conducting a randomised controlled trial and commissioning a report on international comparisons.
The cash savings market is not working well for many consumers:
We propose remedies in four main areas:
We have issued a Feedback Statement and Consultation Paper summarising the responses we received on our proposed remedies and consulting on rules and guidance to take some of these remedies forward. We released a Policy Statement in December 2015 which made these rules and guidance provisions final (with minor changes to reflect feedback from respondents). The new rules and guidance will come into force in December 2016.
Alongside the Policy Statement in December 2015 we published the first set of data as part of our 'sunlight remedy'. We plan to continue to publish the sunlight remedy at six-monthly intervals. Providers of easy access cash savings accounts and easy access cash ISAs that are not included in our sunlight tables and would like the opportunity to submit data should contact us at email@example.com.
We are also carrying out some real life testing of certain other remedies we have proposed. We plan to report back on these trials in a further consultation paper in early 2016.
For more information see:
Copyright © 2016 FCA. All Rights Reserved.