FCA invited to rethink cross-subsidy ban to boost consumer access

'Overriding competitive forces' may be necessary, suggests paper

Nicola Brittain
clock • 3 min read

Academics and Financial Conduct Authority (FCA) staff have suggested cross-subsidies might broaden consumer access to financial services, despite the regulator banning the practice within firms in 2012.

The authors of an occasional paper on consumer access commissioned by the FCA suggested the principle of cross-subsidising would help include otherwise excluded customers from the market. "Potentially millions" of UK consumers cannot use the services that would help them meet their needs and play their wider role in financial markets and the economy, they wrote. They argued better access to these services would help improve market integrity, drive competition and promote financial stability and economic growth. The FCA banned cross-subsidy within advice firms as part of its Retail Dis...

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