The EC reports on the results of the above, noting that banking, telecom and energy services scored particularly low. Markets for investment product and mortgages are described as being rock bottom for the third year in a row. It is noted that the EC is working on a consumer credit study and highlights its legislative initiative on bank accounts, which includes rules to grant all EU consumers access to a basic payment account.

TSC has published a report setting out its conclusions and recommendations on this topic. It recommends that RBS and Lloyds reconsider its restrictions on access to cash machines for basic bank account holders and welcomes the public commitment given by Barclays, HSBC and Santander to continue to provide basic bank account holders with unrestricted access to cash machines. TSC intends to write to the other institutions that provide basic bank accounts asking them to confirm that that they will continue to offer this service, and that they do not intend to restrict cash machine access for any of their customers and will publish their responses. The report also includes minutes, written evidence and correspondence.

FSCP has undertaken a review of the effectiveness of FSA as a conduct regulator focusing on three areas of its recent work: PPI replacement products; packaged bank accounts; and the impact of firms’ in-house reward and incentive structures. Based on the findings of these case studies, FSCP sets out a series of recommendations for FCA’s approach to conduct regulation. It highlights that FCA must: act quickly to prevent widespread consumer detriment; make effective use of consumer and market intelligence; utilise the full suite of its powers; ensure risks are prioritised and resources are used effectively; deliver a credible deterrence and build a culture within FCA to deliver its regulatory vision.

FSA has published new rules which will require banks and building societies to check whether customers are eligible to claim on insurance cover before selling them a packaged bank account. From 31 March 2013, banks and building societies must: check whether the customer is eligible to claim under each policy and share that information with them; If the sales adviser is recommending policies in the package they must establish whether each policy is suitable for the customer and alert them if some are not, and provide customers with an annual eligibility statement setting out the requirements to claim each of the benefits under each insurance policy in the package which should prompt customers to check whether their circumstances have changed and whether the policies continue to meet their needs. FSA is also consulting on further issues including a proposal that annual eligibility statements should be sent to customers as a separate mailing to give them added prominence, and that banks and building societies should proactively tell customers who have triggered the age limit for claiming on the travel insurance element, or warn them if they will do so before the next statement is due. FSA notes that it intends to monitor is the promotion of packaged accounts where monthly costs are advertised alongside yearly benefit Responses to the consultation are required by 29 October 2012. Subject to the outcome of this consultation, FSA expects to issue a PS with final rules in December 2012.

On 26 July 2012, the FSA Board made changes to the Handbook in instruments which introduce new eligibility and suitability rules for firms arranging insurance contracts as part of a packaged bank account (Packaged Bank Accounts Instrument 2012/37)

Further to a March 2012 consultation on bank accounts, the EC has now published a summary of responses received. Responses showed that consumers would generally be in favour of further action at EU level with respect to bank accounts, but that responses from financial institutions indicated that the current legal framework already guarantees sufficient protection of the interests of consumers and, if any action were to be taken in this area, it should be at national level.

OFT has launched a review of the personal current account market and outlined a longer term programme of work aimed at addressing competition concerns and a lack of customer focus across the wider retail banking market. This will seek to establish how the market has evolved since OFT's market study in 2008. It will look at whether initiatives agreed by the OFT with banks have been successful at improving the switching process, increasing the transparency of personal current account charges and allowing people to manage their accounts more effectively. As well as reviewing progress on current accounts, OFT also intends over the next two years to consider the operation of payments systems and the banking market for small and medium-sized enterprises. It is also planning to look in more detail at the way in which consumers make decisions and engage with retail banking services, including through applying behavioural economics.

This press release notes that a resolution has been adopted which calls on the EC to tackle financial inclusion. In a report by Jürgen Klute, he argued that banks and other institutions offering payment accounts should not be able to refuse granting such an account on grounds such as low income, type of employment, credit history, or level of indebtedness. Payment service providers should be required to ensure that among the products that they offer the basic payment account is always the most affordable account for basic transactions. The resolution also asks the Commission to submit by January 2013 a proposal for a directive ensuring access to basic payment services to all consumers legally residing in the EU.

Topics include: restoring trust in banks; ISA transferring times and current account switching. (23/05/12)

This EC services working document considers the need for action at EU level on fee transparency, account switching and access to basic bank accounts, and, if so, what measures could be taken in relation to one or all of these issues. Responses are required by 12 June 2012.