The CMA has announced the independent members of the group for its investigation into the supply of personal current accounts (PCAs) and of banking services to small and medium-sized enterprises (SMEs).
The group has published a timetable for the various stages of the investigation and is required to publish its final report by 5 May 2016.
The Competition and Markets Authority (CMA) announced its decision to refer retail banking for a full ‘phase 2’ market investigation last week and the group is now carrying out a new, comprehensive and independent investigation to see if there are any features of this market which prevent, restrict or distort competition and, if so, what action might be taken to remedy them. (More information on market investigation references).
The group has also published an issues statement which sets out the proposed scope of the investigation. It outlines possible concerns about competition in retail banking but does not mean that the group has yet established that there are competition problems. The purpose is to help those submitting evidence to focus on the issues that will be investigated. The group will also welcome views on whether the correct issues have been identified.
The investigation will be chaired by Alasdair Smith, one of the CMA’s designated inquiry chairs, and the other panel members appointed are Tom Hoehn, Philip Marsden, Jill May, and Ed Smith. The investigation group will act as the decision maker in the case and is chosen from the CMA’s expert independent panel members, who come from a variety of backgrounds, including economics, law, accountancy and business.
Alasdair Smith, Chair of the Retail Banking Market Investigation Group, said:
The importance of banking to customers, small businesses and the wider economy is clear.
Widespread concerns have been expressed in recent years about the banking market. We will investigate what are the possible underlying causes of these. We are particularly focusing on the relatively small numbers of customers who switch banks, the difficulties they face in comparing offers, the persistently high market share of the bigger providers, and the barriers that face their newer and smaller competitors.
However these are just our starting points and we very much encourage submissions from everyone interested in the issues we have identified or who thinks we may be missing important areas.
The same group of panel members will carry out a review of the SME undertakings given by some banks in 2002, the details of which were also announced last week. A separate timetable has been also published today.
All information relating to the investigation will be available on the retail banking market investigation case page.