BBA updates on FSA bank regulation switch

The switch of bank regulation to the Financial Services Authority (FSA) will improve ’certainty’ for customers, an industry group has said.

According to the British Bankers’ Association (BBA), the changeover will also lead to the retention of the Banking Code, the set of rules currently governing banks.

The FSA is due to take on the regulation in November - and in an update released last week the watchdog indicated that private bank and other bank customers would experience some changes as a result.

Switching current accounts and cash ISA balances is to be made easier, while provision of key facts about goods and services is to be offered before sale, rather than afterwards, as is currently the practice.

BBA chief executive Angela Knight said: ’The Banking Code has done good service but now covers a lot more than when it started. People want certainty and 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.’

The latest edition of the Banking Code dates from March 2008.ADNFCR-2318-ID-19140661-ADNFCR