FCA finds failings in half of automatic bond renewals

Carmen Reichman
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The Financial Conduct Authority said it is concerned about the fairness of automatic renewals of fixed-term bonds, after it has found failings in more than half of firms reviewed.

Publishing the first part of its thematic review into automatic renewal, the regulator has found that about half of the firms surveyed offered contract terms or followed practices in issuing fixed-term bonds that were concerning. Out of a sample of 30 firms, which included the largest retail firms in addition to firms appearing on best buy lists of bonds, 16 had shown elements that were worrying. It found that some firms were using terms in their contracts, such as "appropriate", that could be interpreted in the firm's favour as opposed to the customer's. Some firms, the FCA found,...

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