The FCA has published consultation paper CP15/24 which summarises the feedback it received on the proposed remedies from its cash savings market study.
In the feedback, the main concerns raised related:
- Certain elements of the switching box.
- Proposals on the automatic renewal of fixed term bonds.
- Security, and other risks in relation to use of account aggregation services.
The paper also sets out proposals:
- Requiring firms to provide consumers with key information in a product summary box.
- Adding guidance on the prominent display of interest rate information.
- Changes to notifications, in particular:
- amending existing guidance so that customers are notified of all disadvantageous rate changes and expiring bonus rates;
- adding guidance that firms should notify customers to alert them to the maturity of a fixed-term account;
- adding guidance that firms should send reminder notifications about bonus rate expiry, disadvantageous rate changes and maturity of fixed-term bonds where the original notification was sent more than 14 days before the event; and
- adding a rule that requires firms to provide a prompt and efficient service to enable a customer to switch to another account offered by the same firm (as well as an account offered by an alternative firm as is currently already required).
The consultation paper can be read here. Feedback on the proposals should be submitted to the FCA by 12 October 2015.