FCA has published its response to the Commission’s green paper on retail financial services (see FReD 11 December 2015). FCA’s response discusses some of the overarching issues raised by the green paper, including:

  • already agreed measures;
  • disclosure;
  • lack of certainty over application of the rules;
  • collaboration for innovation;
  • risks to the consumer;
  • lack of familiarity; and
  • diversity of consumers.

FCA then provides its specific responses to questions in the paper and details a set of actions which it believes the Commission should prioritise, including:

  • further research into consumer diversity and behaviour;
  • strategy to address large price differences;
  • review of existing disclosure requirements to discern whether the existing requirements could be better aligned;
  • consumer awareness of charges for transactions in a foreign currency; and
  • opt-in regimes where work should focus on markets where consumers do not already have a diverse choice of retail financial products.

(Source: FCA responds to Commission’s retail paper)