FCA publishes cash savings action plan

FCA has published a 14 point action plan for banks and building societies. The plan aims to ensure:

  • that firms pass on interest rate rises to savers appropriately;
  • good and effective communication with customers; and
  • that firms are offering better savings rate deals.

The plan includes:

  • requiring firms that offer the lowest rates to provide their Consumer Duty fair value assessments by 31 August 2023 – and FCA will take action by the end of the year against those that can’t demonstrate fair value;
  • FCA looking at when firms change their rates following any base rate change;
  • publishing a best to worst table of easy access savings rates every 6 months;
  • reviewing performance on cash ISA to cash ISA switching;
  • FCA reviewing the effectiveness of firms’ engagement with customers by the end of March 2024;
  • expecting firms to use their fair value assessments of on-sale products to ensure themselves and FCA that they provide fair value, and accelerating their fair value reviews of off-sale accounts;
  • expecting firms to take action to prompt customers with lower rate accounts to consider alternatives;
  • FCA expecting all firms to consider the effectiveness of customer communications – and for larger firms to provide it with an evaluation by the end of 2023; and
  • firms committing to support consumer financial resilience – large firms will need to support a targeted firm-by-firm communications campaign.

Emma Radmore