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Banks pledge to work with FSA on reform

Banks pledge to work with FSA on reform

Category: Money

Updated: 27/04/2009
First Published: 27/04/2009

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The Financial Services Authority (FSA) will have the full support of the UK's banks when it takes over the responsibility for the country's Banking Code.

The assurance has come from the British Banking Association (BBA), which has said that it fully supports the FSA's intentions to continue sending customers a straightforward leaflet which explains what the code does and what to do if they have concerns.

The FSA has also said consumers can expect a prompt and efficient service when switching accounts under new rules that all banks, building societies and credit unions will have to follow.

Lenders will also be forced to provide information to potential customers when they are deciding which bank to join. "When the latest changes to the content of the Banking Code were made last year, the BBA announced that it was asking the FSA to take over the regulation of its content," said BBA executive director, Angela Knight.

"The Banking Code has done good service but now covers a lot more than when it started. People want certainty, so now is the time to transfer these rules to the main financial regulator.

"We are pleased at the progress that has been made and are keen to continue working with the FSA to complete this important piece of work."

Which?'s Vera Cottrell believes the FSA must get tough to make a success of retail banking regulation, using its full range of powers to keep banks in check.

"Instead of closing the stable door after the horse has bolted, it must be proactive in finding and dealing with problems, or consumers will lose out," she added.

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