| Link(s): | CP23/29: Access to cash | FCA CP23/29: Access to cash (fca.org.uk) Costs to consumers and SMEs of a loss of access to in-person cash and banking services: Narrative report (fca.org.uk) |
Context
The FCA commissioned research from London Economics on access to cash and banking services for consumers and SMEs, and has published the report and findings alongside a Consultation Paper.
Key points to note and next actions
The FCA has published a number of ‘Access to Cash’ documents, which may be of interest to any firms having difficulty in finding bank branches to pay cash and cheques in.
Individual and business customers may rely on cash machines, bank or building society branches and post offices for a wide range of services including cash withdrawals or deposits, in-person payments or providing documentation to prove their identity. Despite the recent decline in cash use, punctuated by the COVID-19 pandemic, access to these services remains important for consumers and SMEs.
In March 2020 the government announced its intention to legislate to protect access to cash and ensure that the UK’s cash infrastructure remains sustainable in the long term. This legislation is contained in the Financial Services and Markets Act 2023. Through the Act, the FCA is now tasked with ‘seeking to ensure reasonable provision’ of cash deposit and withdrawal services for personal and business current accounts across the UK. In determining ‘reasonable provision’ it must also have regard to local deficiencies in the provision of cash access services which have significant impacts.
The consultation sets out proposals to establish a new regulatory regime, using the new powers from the Act. The proposed rules will require banks and building societies designated by the Government to assess and fill gaps, or potential gaps, in cash access provision that significantly impact consumers and businesses. If you have any comments about the proposals, send them to the FCA using one of the following methods by 8th February 2024:
- Using the form on the website or by email to: cp23-29@fca.org.uk
- By writing to: Retail Banking, Financial Conduct Authority, 12 Endeavour Square, London, E20 1JN
- By telephone to: 020 7066 1000