FSA’s new banking rules

April 25, 2009 by Brendan

News

The Financial Services Authority (FSA) is tightening the rules on banking and is taking over all the retail banking regulation concerning conduct from the Banking Code Standards Board (BCSB) from November of this year.

This will give the FSA additional power and the right to fine companies that fall foul of these rules. These voluntary banking codes are currently enforced by the BCSC and govern the day to day relations between banks and their customers.

The FSA will expand the current rules to include the need to provide an efficient and prompt service to customers switching bank accounts. Credit unions, banks and building societies will need to follow the new rules.

Another rule will be an explicit requirement to treat customers fairly when customers experience trouble with processing payments or financial difficulties and banking services will need to be ‘prompt, efficient and fair’ in their relationship. These new rules are said to be ‘important new standards’ that companies must meet and will affect the customer’s everyday interaction with those companies.

Managing Director of the FSA’s Retail Department, Jon Pain, said:

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

These new changes will be incorporated into CeFA and CeMAP training programmes but not until the ifs changes the syllabus, which is usually updated twice a year so those taking their CeFA or CeMAP exams do not need to worry about this information straight away,