Savings account update as FCA considers major rule change | Personal Finance | Finance

Rule changes to enable people to receive clearer information from financial firms to make it easier for them to find and compare products are being considered by the City regulator. The Financial Conduct Authority (FCA) is exploring how it can simplify communications about savings accounts. It will also review parts of its credit advertising rules, such as lengthy terms and conditions.

As part of a range of proposals to streamline its rules, reduce burdens on businesses, and improve outcomes for consumers, the FCA is also examining its expectations for mortgage lending. This work will build on the regulator’s previously introduced Consumer Duty, which requires financial firms to put customers at the heart of their operations, including in their communications and product design.

Despite receiving “clear feedback” from the industry that now is not the time for widespread changes to its rules, the FCA said it will continue to engage with industry and others to “get the balance right”.

Its plans include reviewing current disclosure rules to give firms more flexibility to tailor their communications to customers’ needs and preferences, such as online and digital transactions.

It also plans to “retire” some outdated guidance for firms. The UK Government has focused heavily on economic growth, including looking at ways for regulators to work more efficiently.

Sarah Pritchard, the FCA’s executive director of competition, consumers and international, said: “These proposals are part of our long-term efforts to future-proof our rules, reduce burdens for financial firms and will help the ambitious government targets to cut the cost of regulation.”

The FCA said it has set four priorities to focus on for its five-year strategy – helping consumers, fighting crime, supporting growth and being a “smarter regulator”.