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FCA acts on current accounts

finance-fcalogoThe Financial Conduct Authority (FCA) has announced that it will take action to improve competition in the current account market. This follows a series of recommendations which were proposed by the Competition and Markets Authority (CMA) as part of its investigation into retail banking.
The FCA will take action in a number of areas:
The CMA recommended that the FCA research, test and implement measures to increase transparency of overdraft use and charges, and the FCA will also consider the need for rules in relation to the proposed Monthly Maximum Charge (MMC) and will begin to collect data in 2017 in order to do this.

In addition, beyond the scope of the CMA’s recommendations, the FCA will also undertake work on overdrafts (both arranged and unarranged). This will fall within the FCA’s future work on high-cost

To help consumers assess the differences in service quality between banks, the FCA will consider requiring banks to publish better, comparable information. It will set up an expert group to consider what information should be published.
It will also begin testing methods which allow customers to switch banks more easily and to consider doing so more often.

Christopher Woolard of the FCA, said: “Our work, taking action in response to the CMA’s recommendations, will help to further drive effective competition by helping customers and small businesses to take more control of their finances.

“Our role in regulating retail banking markets goes beyond the remedies the CMA has asked us to take forward, and we will continue to look more broadly at how well these markets work, with a particular focus planned on high-cost credit including overdrafts. We will also be looking at wider retail banking business models.”

Posted 2:31 PM Thursday November 17, 2016. Filed under Wealth. You can follow any responses to this entry through the RSS 2.0. You can leave a response to this entry. Pinging is currently not allowed.

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