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FSA demands banks issue packaged account statements

by William Robins on Dec 14, 2012 at 13:47

FSA demands banks issue packaged account statements

The Financial Service Authority (FSA) is to press ahead with rules requiring banks to provide customers with an annual statement regarding their eligibility for insurance sold to them as part of a packaged account.

In July the FSA consulted on including a proposal that annual eligibility statements (AES) should be sent to customers who had bought a packaged bank account.

The FSA wants consumers to be given more power to check they are able to claim on the insurance policies sold to them this way.

Packaged accounts bundle other features such as travel insurance in with a current account.  

The FSA has decided it will not force banks to provide a breakdown of the insurance premium for packaged bank account sales.

The regulator said it would look at a possible suit of measures, regarding whether pricing claims were fair and not misleading and ensuring that packaged accounts promoted as convenient met customers’ expectations.

1 comment so far. Why not have your say?

Charles Rickards

Dec 14, 2012 at 15:25

What a waste of time and money! Do they honestly believe that enough bank customers are going to spend time reading such a document to make it a worthwhile exercise? It would be easier to ban packaged products, make them all un-bundled and transparent.

While they are at it they should ban commission on all sales, advised or otherwise and make the customer pay for any service provided.

Then they can sit back and watch the market that funds their existence disappear.

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