CMA updates on loyalty penalty work

CMA has updated on its work on the loyalty penalty. It says key decisions are due shortly and that two enforcement cases are underway. It says it expects regulators to take strong action where they find problems and notes FCA is undertaking further work in insurance, cash savings and mortgages. It wants to see FCA looking at all options to address the issues in the general insurance markets, and says it expects to see a consultation paper from FCA later this year on its Basic Savings Rate proposals. It also encourages FCA to look at what measures need to be taken to help mortgage customers once its current initiatives are complete.

FCA responded by updating on its work, confirming that:

  • it has completed its mortgage market study and is now looking at remedies;
  • it will be consulting later this year on price discrimination on the savings markets; and
  • it will publish the interim findings of its market study into general insurance pricing practices in home and motor insurance during the summer.

Additionally, FCA is working with other regulators on the cross-cutting recommendations, including on duty of care, vulnerable customers, fair pricing and the future role of Open Finance. It feels much of its ongoing work is designed to address wider consumer harm, and has published an infographic showing what work it is carrying on in market-specific and cross-cutting work.

Emma Radmore