The FCA said on Tuesday it had commissioned a survey of 17 UK retail banks and building societies to review how these firms ensure that their customers understand the products they have bought.
“A bank has a responsibility to ensure that customers have had a reasonable opportunity to understand a transaction, having regard to their knowledge and personal circumstances,” it said in a statement.
“We are concerned that some firms may not effectively be distinguishing between customer understanding and customer satisfaction: a satisfied customer is not necessarily one that understands the product (despite guidance provided by firms).
“It is important that firms continue to check their customers’ understanding regularly and ensure that customers are considered during the end to end life cycle of a product.”
The FCA plans to monitor this area and said it undertake further follow up work in due course.
