On 14 May 2019, the FCA updated its webpage on Discussion Paper 18/6 regarding price discrimination in the cash savings market. The Discussion Paper set out a range of options to address issues faced by longstanding customers in the easy access cash savings market.
Whilst a Feedback Statement to the Discussion Paper is not yet available, the update explains that Citizens Advice subsequently submitted a super-complaint to the Competition and Markets Authority (CMA) on the ‘loyalty penalty’ across a range of essential markets. The CMA’s response to the super-complaint included several cross-market and market-specific recommendations. On cash savings, the CMA supported the idea of pricing-based interventions. The CMA also recommended further work to consider the feasibility of extending Open Banking to savings, and collective switching.
The FCA notes that it is continuing to work across the CMA’s recommendations. The FCA is also continuing to consider general feedback to the Discussion Paper, and it intends to publish either a Consultation Paper or Feedback Statement in the second half of 2019.