The Financial Conduct Authority (FCA) is launching a study of the cash savings market, examining how accounts are sold and obstacles to switching among other aspects.
More than four-fifths of adults in the UK with cash holdings in the region of £1.2trn have a savings account, according to the regulator.
Its study will assess whether competition in the market is working well for consumers, while customer behaviour will also come under the spotlight. The FCA is particularly interested in why there appear to be low switching rates and whether information available to new and existing customers allows them to make informed choices.
The FCA will also look into how complex products are and how well consumers understand them.
Additionally, the regulator intends to scrutinise supplier conduct, including the number and variety of accounts, their terms, and the channels through which they are sold.
It said it expects to publish a statement of its preliminary findings in spring 2014 and publish our final report in autumn 2014.
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