The Financial Conduct Authority (FCA) says that it analysing lenders’ fair value assessments following concerns that not all savers are getting good deals.
The regulator has asked nine firms to provide their assessments of what value their savings products offer. The follows the introduction of the Consumer Duty in July, which requires firms to ensure the products and services across their range deliver fair value to their customers and act if they do not.
Commenting on the announcement, Mark Hicks, Head of Active Savings, Hargreaves Lansdown said “The large high street banks have been getting away with not passing on interest rates to their customers for too long – relying too heavily on customer apathy. On the face of it, it looks like this could drive change, but it could still be too easy for the high street banks to continue to offer poor rates to the majority of their clients, as their high-paying easy access accounts are often capped at very low amounts. So, unless this point gets addressed, whilst it is positive to see the FCA taking the next step in analysing the fair value of banks and building societies savings rates, the danger is it’s unlikely we will see any fundamental change for the majority of customers.”