In September 2023, the Financial Conduct Authority (FCA) contacted CEOs and firms as part of its Supervision Strategy. One of the main concerns highlighted in these letters was the average time it takes customers to transfer their investments and savings between platforms.
In light of the higher standards mandated by the Consumer Duty rules, transfer times continue to be on the radar of the FCA. Long transfer times can be detrimental to customers and therefore prompt and efficient transfers are crucial for ensuring positive outcomes for consumers.
The FCA outlined its expectations:
- Firms are expected to engage with STAR and support the principles and actions endorsed by the FCA in connection with the STAR initiative.
- Firms reporting poor transfer times compared to peers, and not already engaged with STAR, will face inquiries about their reasons for non-engagement. The FCA is prepared to act if progress on transfer times is lacking.
FCA
"As a vehicle to standardise and demonstrate reasonable industry transfer times, we expect firms to engage with, (if not already) and continue to, support the principles and FCA Public actions endorsed by STAR initiative. Where firms are reporting poor transfer times in comparison with peers and do not already engage with STAR, we will be enquiring about their justification for non-engagement and will act in the absence of progress on transfer times."
"Where firms have not considered such actions to improve their transfer times, we are now looking to them to do so. Firms should not assume that because we have not recently engaged with them specifically, their transfer times processes do not need to be reviewed."
FCA expects firms to engage with STAR as part of Consumer Duty rules
With the FCA’s on-going support and a focus on firms evidencing that they’re acting to improve transfer times, the STAR programme, is poised to make even greater strides in enhancing consumers’ experience of transfers.
This month STAR awarded 37 brands with a 2024 accreditation.