FCA considering new rules to block branch closures

It comes off the back of a consultation conducted by the treasury that said it planned to use legislation to give powers to the FCA to guarantee reasonable public access to cash. This included introducing rules that meant people shouldn’t have to travel more than a specific distance to access cash without a charge.

According to the Financial Times, some regulators have told lenders and industry groups they believe in-person banking services should remain important alongside ATMs and other initiatives. It also found that one person close to the FCA said the treasury did not make clear definitions but the regulator was “pretty clear where it’s going.”

In addition to this, another individual who is “involved in the discussions between the FCA and the banks” said most lenders understood the need for in-person services in some areas. This is believed to be particularly the case in larger towns, however they added they were pushing the regulator to be “flexible”.

According to the Financial Times, this individual said: “In a small village, cashback in the local shop and an ATM might meet most needs, but a bigger town will have more complex needs that will require different solutions.”

The FCA has declined to comment on the news.