FSA may regulate "everyday banking"
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The FSA will be responsible for regulating banks and building societies’ payment transactions under the Payment Services Directive.
In its latest consultation paper, published today, the FSA is considering whether it would be more effective to extend the FSA’s regulation across all aspects of banks' relationships with their retail customers.
Currently the Banking Code Standards Board monitors and enforces the voluntary Banking Codes governing current accounts, personal loans and overdrafts, savings, card services and ATMs.
The FSA is considering taking over all regulated activities including accepting deposits and issuing electronic-money, but excluding credit, such as unsecured loans and credit cards, which is regulated by the Office of Fair Trading.
FSA managing director of retail markets Jon Pain says: “Retail banking is going through a period of rapid change and regulation needs to keep pace with this change. We believe that in order to ensure that the regulatory model is fit to meet these challenges, now and in the future, the FSA should regulate the wider aspects of everyday banking for all consumers.
“We are working closely with the Banking Code Sponsors, Banking Code Standards Board, the Office of Fair Trading and consumer bodies to ensure we have input from all of the groups interested in this field.”
The FSA is inviting responses by February 16.
