UK Regulator will take "robust action" against UK banks not offering fair deposit rates

[Brendan Burgess]

FCA sets out expectation for fair and competitive saving rates

Many people are feeling the squeeze from rising interest rates and prices, so it is more critical than ever that they are offered fair and competitive saving rates. We held a constructive meeting today with the UK’s largest banks and building society, which builds on work we have been doing over...

www.fca.org.uk

FCA sets out 14-point action plan on cash savings

The FCA has today set out a 14-point action plan to ensure banks and building societies are passing on interest rate rises to savers appropriately, that they’re communicating with customers much more effectively and offering them better savings rate deals.

www.fca.org.uk

As part of its action plan, the FCA will:

1. Require firms offering the lowest rates to provide their fair value assessments under the Consumer Duty by 31 August 2023 and take robust action by the end of 2023 against those who cannot demonstrate fair value.

The FCA expects firms to:

9. From today, use their fair value assessments of on-sale savings products to assure themselves and the FCA, where needed, that these represent fair value for customers.
...

11. Take action to prompt their customers in lower paying savings accounts or non-interest bearing accounts to consider alternatives.

 

[NoRegretsCoyote]

The UK now has a "A new Consumer Principle that requires firms to act to deliver good outcomes for retail customers."

This language isn't part of the current Consumer Protection Code in Ireland (dating from 2012). But a review of the Code is currently under way and a discussion paper has a section on how financial services firms should act in the best interests of consumers.