New FSA rules to increase scrutiny of packaged accounts
New rules from the Financial Services Authority will require banks and building societies to offer more personalised packaged account benefits and to more vigorously assess consumers eligibility for products, according to marketing and brand specialist Collinson Latitude.
The firm, which is working on a series of products to help banks comply with the new requirements, said that packaged accounts, through which account holders pay a monthly fee in exchange for a bundle of products such as travel insurance, have become an important source of banking revenues.
The FSA’s ruling is expected to make it easier for the consumer to make an informed decision when considering the increasingly complex bundles of different bank account benefits, it added.
Janet Titterton, director, Collinson Latitude, says: “The FSA is expected next month to announce new rules on packaged bank accounts, following the regulator’s recent consultation paper.
“The FSA is supportive of packaged accounts because they offer benefits that add value for customers. However, it is expected the FSA will introduce new rules to help ensure consumers are clear about what they are buying through such packages.
“In the consultation, the FSA has been asking for feedback on its proposal that banks should establish a customer’s eligibility and suitability for individual policies, as well as providing account holders with an annual eligibility statement and keeping a suitability assessment.”