FCA announces savings account reforms

Additionally, the regulator will introduce a new rule which requires firms to provide a prompt and efficient service so that a customer can switch to a better account offered by the same firm.

The FCA is also working with industry to deliver seven day switching for the vast majority of cash ISA transfers from January 2017.

The measures are in response to the FCA’s market study into competition in the cash savings market which found that, for many consumers, competition in the £700bn sector was not working as effectively as it could do.

The FCA is expected to confirm finalised rules later this year and intend for the rules to come into force in 2016.

Christopher Woolard, Director of Strategy and Competition at the FCA, said:

“In a good market, providers should be competing to offer the best possible deal. Consumers should expect the information they need to shop around to be clear and easy to understand. When they wish to move accounts, they should be able to do so with the minimum of fuss.

“Our package of measures are all about giving consumers the information they need to make an informed decision about what to do with their savings, and the ability to act on it quickly.”