UK Banks could be fined for mistreating customers
In a move which has come about because of a European directive, the Financial Services Authority (FSA) is set to take over regulation of UK payments from the Banking Code Standards Board. The current system is purely voluntary although under the EU directive a statutory system will be put in place which will see UK banks fined if they "fail their customers". But will this actually work?
While we have seen many toothless regulators attempt to control and dictate the UK financial sector it would appear that the FSA will have substantially increased powers to introduce fines and other penalties for guilty banks. Make no mistake about it, the guidelines are there and the power is waiting to be used as and when appropriate. However, whether the FSA, a regulator already under scrutiny and attracting severe criticism in the UK, will want to fine banks who fail their customers or issue warnings remains to be seen.
There is no doubt that the UK banking system is set to change dramatically in the medium to longer term with more regulation expected and more emphasis on customer support and delivery of services. Whether this will accelerate the move away from "free banking" remains to be seen.
Share this..
Related stories
Will the improvement in the UK economy be enough to save many from disaster?
The surprise improvement in the UK economy in the second quarter of 2010 has caught many analysts and experts by surprise although ultimately it should lead to greater consumer confidence. However, while you would hope that an improvement in the UK economy would have an immediate impact upon personal financial wealth in the UK, many people in financial trouble at the moment have gone beyond the po...
Read MoreRoyal Mail Under More Pressure
Even though the Royal Mail has been under extreme pressure for a number of years it seems that the expected end to post office closures may be delayed. A report from an influential committee of MPs will this week confirm that the management of Royal Mail were not able to give a guarantee that the number of post offices in the network would stay above 11,500.
The company recent anno...
Darling hints at further rescues
The economy could need another government stimulus package, the chancellor of the exchequer has admitted.In an interview with the Observer, Alistair Darling said that the move would likely be made if the £20 billion recession-busting plan outlined in the pre-Budget report last week failed.The plan included a cut to VAT, which comes into effect today - along with a big expansion of public works pr...
Read MoreTough times ahead for UK supermarkets
31/12/2014 2015 will be a very tough year for supermarkets, according to Asda’s chief executive, Andy Clarke. In an interview with the BBC, he said he has never seen profitability fall so quickly in the UK supermarket sector, and believes that 2015 is set to be just as challenging. He cited discount grocers as one of the main reasons for this. Analysts Kantar Worldpanel say Aldi and Li...
Read MoreGordon Brown attacked by Alistair Darling
Over the weekend there have been various allegations in the Sunday press regarding the relationship between Alistair Darling, Chancellor of Exchequer, and Gordon Brown, the Prime Minister of the UK. One particular article in the Mail on Sunday alleges that Alistair Darling is at loggerheads with Gordon Brown regarding future public sector spending and the fact that Gordon Brown seems more interest...
Read More