Tag: Overdrafts

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CMA publishes final decision to vary Part 6 of the Retail Banking Market Investigation Order 2017

On 4 December 2019, the UK Competition and Markets Authority (the CMA) published:

– its final decision to vary the Retail Banking Market Investigation Order 2017 (the Order) and remove Part 6 of the Order;

– a notice of variation to the Order; and

– the Retail Banking Market Investigation Order 2017 Variation Order 2019 (the Variation Order) and an explanatory note to the Variation Order.

The broad effect of the Variation Order is to remove the requirement (set out in the Order) for alerts to be sent to overdraft customers. The reason the CMA has made the Order is because of the introduction of similar rules in Chapter 8 to the Banking: Conduct of Business Sourcebook (BCOBS) and, in particular, the provisions in BCOBS 8.4.

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FCA publishes further policy statement on overdraft pricing and competition remedies

On 2 October 2019, the UK Financial Conduct Authority published a further policy statement, PS 19/25, on overdraft pricing and competition remedies.

The policy statement makes changes to the definition of ‘private bank’ in the Banking Conduct of Business Sourcebook. It also introduces a requirement for firms to publish a range of overdraft pricing information. Its aim is to increase transparency and raise awareness of a firm’s overdraft charging structures.