Frequently asked Questions

  • How do customers benefit from the Codes?
  • How can the BCSB be truly independent of the banking industry if it is funded by it?
  • What are the advantages of voluntary, as opposed to statutory, regulation?
  • What kind of disciplinary action has been taken in the past against subscribers’ malpractice?
  • What sort of advice can the BCSB give to customers looking to invest their money?
  • How will customers be able to find out if banking institutions comply with the Banking Codes?
  • How will the BCSB be able to monitor internet banking and e-commerce given the huge amount of growth in this industry?
  • How do customers benefit from the Codes?

Customers benefit from the Codes’ emphasis on ‘Good Practice’ within the banking industry and the support they receive from the vast majority of institutions.

How can the BCSB be truly independent of the banking industry if it is funded by it?

The BCSB has a powerful board of directors, the majority of whom are independent of banking interests. The statutory regulator, the Financial Services Authority, is also funded by the industry it regulates.

What are the advantages of voluntary, as opposed to statutory, regulation?

It is cheaper, more responsive to change and less bureaucratic.

What kind of disciplinary action has been taken in the past against subscribers’ malpractice?

We have suspended or refused the registration of institutions which are unable to meet important Codes requirements.

Many shortcomings are rectified by dialogue with banks and building societies, without the need to deploy formal disciplinary powers. But, in a number of cases, we have publicly named banks and building societies who had breached the Code. See Press Releases for further details. Some subscribers have been asked to change the interest rates they pay to customers.

What sort of advice can the BCSB give to customers looking to invest their money?

The BCSB is not able to advise customers. It is up to the individual to shop around to seek the best product for their needs.

How will customers be able to find out if banking institutions comply with the Banking Codes?

Customers can ask the organisation directly whether they adhere to the Code. Alternatively they can contact us and we can advise them. Who Supports the codes?

How will the BCSB be able to monitor internet banking and e-commerce given the huge amount of growth in this industry?

The banking industry is rapidly changing and regular reviews of the Codes will help to make sure that they remain relevant and meet customers’ needs.

The BCSB encourages companies offering internet banking to subscribe to the Codes.

Many organisations offering internet banking, which are part of larger financial corporations, are subscribers to the Banking Code for example Egg – a division of Prudential.