FCA releases update on work done to tackle the loyalty penalty
Regulatory Updates | 19/06/19
The Financial Conduct Authority (FCA) has published an update on its work to tackle loyalty penalties, and ensure fair outcomes for longstanding and vulnerable customers following the publication of a progress report from the Competition and Markets Authority (CMA) on its response to the Citizens Advice’s super complaint on the ‘loyalty penalty’. The FCA provided an update as follows:
• It has completed its mortgages market study, and is taking forward remedies, including detailed research to understand the characteristics of consumers who do not switch, to inform any further necessary interventions.
• In May 2019 the FCA announced the next steps and timing on its work on price discrimination in the cash savings market. It will publish a feedback statement or consultation paper by the end of 2019.
• Its market study into general insurance pricing practices in home and motor insurance is ongoing, with interim findings to be published during the summer of 2019.
The FCA update also sets out a number of cross-cutting projects that are designed to address the issues involved, these include- its work on firms’ Duty of Care, the identification and fair treatment of vulnerable consumers and fair pricing in financial services.