Switching accounts and cash ISAs will be easier under the new regulatory regime, according to the watchdog.
The Financial Services Authority (FSA) said today that the switching process for customers who want to change current accounts will be made easier.
According to the regulator, rules for banks and building societies will be tightened in November, when it takes on regulatory oversight for banking contracts. It pointed out that its rules would be mandatory for all firms - rather than the current voluntary code system overseen by the Banking Code Standards Board.
The FSA said that customers would see the difference in ease of switching current accounts and cash ISAs - delays in which have caused controversy over recent years. In its update, the regulator also indicated that key facts offered by banks about various goods and services would be given to customers before the sale, rather than afterwards as is the current practice.
Regulatory controls on the financial system as a whole has become an increasingly important issue due to the credit crunch and financial downturn - which many analysts suggest was caused by watchdogs not being tough enough on banks. A general strengthening of the framework was one of the key recommendations of the Turner Review, released by FSA chairman Lord Turner earlier this year.
Jon Pain, FSA retail managing director, said: "These are important new standards that firms will need to meet. They will affect consumers' everyday interaction with banks. Before the new rules come into force, the FSA will publish comprehensive information for consumers detailing their rights and outlining what they can expect from their banking provider."
