Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, what representations he has received on the Financial Conduct Authority's implementation of new rules and guidance on interest rates on savings accounts.

Treasury Ministers and officials receive representations from a wide variety of organisations in the public and private sectors as part of the process of policy development and delivery.

The Government believes that it is important that consumers have the information they need to make sensible decisions about their money. In 2015, the Financial Conduct Authority (FCA) published a study of the cash savings market, which concluded that competition in the sector was not working as effectively as it could be. As a result, the FCA developed a series of measures to improve outcomes for consumers which included introducing rules applicable from 1 December 2016 to improve the information firms make available to consumers and to make it easier for them to switch accounts. This included guidance on the prominent display of interest rates and notifications.

In addition, the FCA trialled a ‘sunlight’ remedy, which aimed to bring to light firms’ strategies towards their longstanding customers. This involved the publication of the lowest interest rates offered on easy access cash savings accounts and easy access cash ISAs on the FCA’s website between 2015 and 2016. The FCA is currently evaluating the effectiveness of the ‘sunlight’ remedy trial and considering whether to introduce this disclosure into rules and whether any other actions may be needed to achieve more effective competition.