FSA consults on conduct of business proposals

7 November 2008

A new consultation has been published this week by the UK's Financial Services Authority (FSA) on a new framework which may regulate the conduct of business for retail banking.

In 2009, the FSA is set to take responsibility for regulating payment transactions at banks and building societies under the Payment Services Directive.

The voluntary banking codes regarding personal loans and overdrafts, current accounts, card services, ATMs and savings accounts are currently monitored by the Banking Code Standards Board.

However, the FSA is now considering the effectiveness of extending its regulations to include all aspects of retail banking relationships.

"Retail banking is going through a period of rapid change and regulation needs to keep pace with this change," said the FSA's managing director of retail markets, Jon Pain.

"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."

The FSA's three objectives include improving business effectiveness and capability, helping retail customers get fair deals and the promotion of fair and orderly markets.

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