In this Policy Statement we report on the main issues arising from CP15/24 and publish the final rules.
Why are we issuing this policy statement?
In January 2015 we published the final findings of the cash savings market study. We found that the cash savings market was not working well for many consumers and we proposed remedies in four areas.
- Disclosure remedies – aimed at improving the information made available to consumers by firms, both at or before the point of sale and post-sale. These remedies include a standardised summary box, a switching box (showing the potential benefits of shopping around) and improvements to the presentation, frequency and timing of customer communications.
- Sunlight remedy – improving transparency of interest rates available to new and existing customers, aimed at raising awareness of providers’ strategies towards their longstanding customers. To achieve this we are publishing data on the lowest-paying interest rates available on easy-access cash savings accounts and easy-access cash ISAs.
- Switching remedies – focused on making the process of switching easier. These remedies included speeding up the cash ISA switching process, and facilitating switching between accounts offered by a firm.
- Convenience remedies – with the aim of reducing any significant barriers to allowing customers to manage savings and accounts in one place, regardless of whether those accounts are with different providers.
In July 2015, we published a consultation paper on how we intended to take these remedies forward.
This document responds to the feedback we received on the consultation and discussion paper, it highlights where we have adjusted our policy to take account of respondents’ views and sets out our next steps.
Who is this policy statement aimed at?
This policy statement affects all active and potential participants in the cash savings market as well as others with an interest in this market. This is likely to include intermediaries such as price comparison websites and those providing account aggregation services.
What are the next steps?
The changes contained in the rules that form part of this Policy Statement will come into effect on 1 December 2016.
Alongside this document, we are publishing the first set of data for this remedy which is aimed primarily at market commentators and shines a light on the lowest interest rates available on open and closed easy-access cash savings accounts and easy access cash ISAs.