FCA has provided an update on progress made in implementing its cash savings action plan. In its update FCA notes that it has seen progress in the speed and size of interest rate changes for savers and improvements in cash ISA transfer performance across the market.
In particular, it notes that firms have, on average, increased rates by more than the value of the most recent base rate rise in August across all types of account and that savers have continued to move deposits out of easy access accounts and into higher paying fixed-term and notice accounts.
Although improvements have been made, FCA has proposed the following further steps:
- continuing to identify and challenge those firms that appear to be taking too long to react;
- continuing to monitor firms’ approaches to providing fair value for on-sale and off-sale savings products;
- working closely with firms on the improvement of the consumer duty fair value assessments including in relation to off-sale products;
- monitoring the industry’s progress against the new target of 90% of cash ISAs being completed within 7 working days for the largest banks and building society;
- analysing sample data from firms to understand the contribution that cash savings products make to firms’ profitability, and how this has changed since the UK base rate started rising;
- reviewing the effectiveness of customer engagement plans; and
- progressing other elements of FCA’s ’14 Point Savings Plan’.