FCA and ICO confirm how firms can support savings customers

The Financial Conduct Authority, FCA, has published a press statement to inform that the FCA itself and the Information Commissioner’s Office (ICO) have sent a joint letter to the UK Finance and Building Societies Association to clarify their expectations given the current high interest rates and the fact that many savers have deposits with (extremely) low remuneration. Specifically, the letter makes reference to the new „consumer duty“, existing marketing regulations that – generally speaking – prohibit communication with customers that have opted out from receiving „marketing material“, and to existing data protection rules which some institutions claim to keep them from contacting their clients and informing them of better deposit options.
#### In detail, the FCA and ICO state the following:
Firms are allowed to send neutral and factual regulatory communications to their savings customers, detailing information about the interest rates and terms of their savings products as well as other available options. Data protection laws, such as the Data Protection Act 2018, do not prevent these communications as long as data protection requirements are met. These messages can be sent, even if customers have opted out of direct marketing. Additionally, firms can disclose any general communications on alternative deposit options on their websites.
The FCA once again reminds institutions that the new Consumer Duty mandates that firms communicate effectively and transparently with customers, ensuring they have the necessary information to make informed decisions. According to the Duty, firms must inform customers about better-suited products; furthermore, they are required to demonstrate the effectiveness of their engagement strategies.
To conclude, the FCA notes that it will closely monitor how firms engage with customers to ensure positive outcomes for savers. Also, it will soon publish an assessment of how well deposit taking institutions are doing in their compliance with the expectations.