Friday 2 November 2018

FCA issues paper on fair pricing in financial products




The Financial Conduct Authority has issued a discussion paper on fair pricing in financial services (DP18/9).  The paper addresses loyalty and inertia pricing, setting out the FCA’s framework for assessing fairness and harm caused by discriminatory pricing.  The paper also considers potential remedies.

The FCA intends that the paper will prompt a public debate on the issues. These issues are relevant particularly to the FCA’s general insurance market study.

The FCA is seeking views, particularly, on two practices.  First, firms charging different prices to different consumers based solely on differences in consumers’ price sensitivity (also known as ‘price discrimination’). Second, firms charging existing customers higher prices than new customers (sometimes referred to as ‘loyalty pricing’ or ‘inertia pricing’).

The FCA seeks comments on the discussion paper by 31 January 2019.

No comments:

Post a Comment