View more on these topics

FCA praises lenders for consumer understanding checks

Retail banks and building societies are doing a good job in checking consumers understand the products they are buying, the FCA says.

The regulator says these firms are increasingly rolling out ways of working to judge consumer understanding of products through the whole lifecycle.

The FCA made the statement following a thematic review into the issue.

The regulator adds that some lenders have “made good progress in developing practices to help ensure their customers have a reasonable opportunity to understand the products they have bought”.

However, the FCA also said a few firms “continue to confuse customer understanding with customer satisfaction”.

The regulator also found the most in-depth lender systems for checking understanding were taken after the sale.

The FCA said these checks were least developed in online sales, but that it had noted improvement in this area.

The FCA says it is keeping a watching brief on the issue.

The regulator studied 18 banks and building societies for the review.

Recommended

Lynda Blackwell FCA

FCA mortgage head Lynda Blackwell steps down

FCA mortgage sector manager Lynda Blackwell has resigned after 16 years with the regulator. An FCA spokeswoman confirmed Blackwell’s departure but would not comment further. It is not known where Blackwell will go. During her time at the regulator Blackwell was the architect of the Mortgage Market Review, and before that was mortgage policy manager […]

FCA logo new 620x430.jpg

FCA moots intervention on pension freedoms

The FCA has set out proposals to intervene in the post-pension freedoms market including defaults and charge caps for non-advised drawdown and “decoupling” tax-free cash from the rest of the pension pot. The regulator has today published its interim findings from its retirement outcomes review, which launched a year ago. It marks the first comprehensive […]

Bailey-Andrew-2012-700x450.jpg

FCA boss: Brexit not bad news for financial services

Brexit will not necessarily be bad news for UK financial services, according to FCA chief executive Andrew Bailey. In a speech this morning at a Thomson Reuters event, Bailey said some Brexit talk was too pessimistic about trade restrictions, where firms are based and the future of open markets. He says: “Does Brexit have to […]

piggy, cash, money

A tailored approach to protection

By Ian Smart, Product Architect, Royal London In an ideal world, clients would be able to afford as much protection cover as they wanted, but few would describe current times as anything approaching ideal. But this doesn’t mean that they have to indulge in an either/or decision that results in missing out on some essential […]

Newsletter

News and expert analysis straight to your inbox

Sign up