On 22 July 2020, the FCA published Feedback Statement 20/12: Intergenerational differences: summary of responses and next steps (FS20/12).
Last summer the FCA published Discussion Paper 19/2: Intergenerational differences in which it wanted to test its understanding of the issues different generations face and identify where, if any, potential action could help the market meet changing consumer circumstances and needs across different generations. In FS20/12 the FCA presents its approach following the Discussion Paper and sets out:
- Why intergenerational difference is an important issue for the FCA, the financial services sector, and for the users of financial services.
- The FCA’s key findings on areas where evolving consumer needs could be better met by financial services and its project conclusions.
Earlier this year the FCA set 4 external priorities in its Business Plan 2020/21. The FCA’s findings on intergenerational differences have not only helped shape the scope and context of these priorities, but also provide a benchmark to evaluate the success of these priorities in improving retail financial markets through future consumer and economic research. These priorities cover:
- Enabling effective consumer investments decisions.
- Ensuring consumer credit markets work well.
- Making payments safe and accessible.
- Delivering fair value in a digital age.
The FCA does not think it would be appropriate or proportionate to pursue bespoke remedies, including rule changes, in response to these findings.