Gregory Campbell – 2016 Parliamentary Question to the HM Treasury

The below Parliamentary question was asked by Gregory Campbell on 2016-01-05.

To ask Mr Chancellor of the Exchequer, if he will discuss with the Financial Conduct Authority the effect of the savings products offered by providers with almost zero interest rates on people with savings.

Harriett Baldwin

In January 2015, the Financial Conduct Authority (FCA) published its Cash Savings Market Study report, which found that competition in the cash savings market was not working well for many consumers. In response, the FCA has consulted on and will subsequently be introducing new rules from 1 December 2016 designed to improve competition by encouraging easier and quicker switching and improving the information savers receive.

These new rules will require firms to provide key information in a product summary box at point of sale and to be clear on what interest rate consumers are getting. The FCA will also 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.