View more on these topics

FSA to regulate retail banking conduct from November

The FSA will take over all retail banking conduct regulation for deposit taking and payment services from the Banking Code Standards Board in November 2009.

Currently, the BCSB monitors and enforces voluntary banking codes which govern banks’ day to day relationships with their customers.

In November the voluntary codes will be replaced by new FSA rules which all banks, building societies and credit unions must follow.

The FSA says notable changes for consumers will include the requirement to provide a prompt and efficient service to help customers switch accounts. This would apply more widely than the commitments in the banking codes, for example to cash ISAs, where the FSA says it has seen delays in the past.

The new FSA rules will also require information about banks’ products and services to be made available to consumers before they become customers.

The FSA will also ensure service remains “prompt, efficient and fair for the duration of the relationship” and firms will also need to comply with the treating customers fairly regime.

The FSA says it will fine firms if they fail to comply with the new rules to the detriment of their customers.

Areas of retail banking that fall outside the FSA’s remit, such as overdrafts and credit card lending, will continue to be regulated under the Consumer Credit Act.

FSA retail managing director Jon Pain says: “These are important new standards that firms will need to meet. They will affect consumers’ everyday interaction with banks.

“Before the new rules come into force, the FSA will publish comprehensive information for consumers detailing their rights and outlining what they can expect from their banking provider.”



News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm