FCA takes first action under Consumer Duty - MorganAsh comments

01 September 2023

In its first public intervention, the FCA has asked nine banks and building societies to provide value assessments on its saving products. It follows concerns that interest rate rises are not being passed to customers and their savings accounts. In July, the FCA issued a 14-point action plan to ensure banks are offering better savings rate deals.

MorganAsh provides the MorganAsh Resilience System (MARS) to enable brokers, advisers and financial services firms better manage and evaluate consumer vulnerability and comply with Consumer Duty.

Andrew Gething, managing director of MorganAsh said: “Where there may still be those questioning the new regulation, today’s action by the FCA is an important reminder to all financial services that Consumer Duty is now live and firms are bound to meet its requirements - or face investigation. As the base rate has continued to rise, the spotlight has remained on savings and the rates being offered by both banks and lenders.

“As part of the overarching goal to deliver good outcomes to consumers, ensuring fair value is an important component. This spans much further than just making sure savings deals represent fair value, requiring firms to support the financial resilience of its customers by informing them when higher rates are available. The FCA itself says the pace of firms to act on this has been slow, highlighting the clear need for the regulator to step in.

“As with all areas of Consumer Duty, communication and good data remains fundamental. Whether it’s for fair value assessments, management information for reporting or vulnerability assessments, a consistent approach to gathering and sharing data is key to forming a clear picture of the value of a product or service, and the customer experience.”