The FCA has published a webpage outlining the outcome of its survey of how banks and building societies ensure their customers understand the products they have bought.

The survey was carried out in response to a recommendation by the Parliamentary Commission on Banking Standards that firms demonstrate that they are fulfilling a duty of care to their customers, embedded in their approach to designing products, providing understandable information to consumers and dealing with complaints.

The FCA reports that in general terms firms have demonstrated good practices. However, the FCA expresses concern that some firms may not effectively be distinguished between customer understanding and customer satisfaction and that firms should continue to check their customers’ understanding regularly to ensure customers are considered during the end to end life cycle of a product.

View FCA update on customer understanding of transactions, 12 April 2016