On 6 June 2014, the FCA published further information confirming it will formally launch a market study into the credit card market later this year.
There are no pre-determined terms of reference or outcomes for the study. However, research carried out by the FCA into how the market is working for consumers found that whilst there appeared to be strong competition in the credit card market, this seemed to focus on particular card features that may not represent long-term value or sustainability.
The market study will help the FCA decide what, if any, actions are needed to make this market work better for consumers.
What this means for you
This market study is part of the FCA’s broader work in consumer credit, such as supervisory activities. Firms should expect and should be prepared, from now on, to engage with the FCA as part of this exercise.