Financial Conduct Authority Policy Statement on Rules for Access to Cash

The Financial Conduct Authority has published a policy statement on the final rules and guidance for a new regulatory regime to support access to cash for the consumers and businesses that rely on it, along with a research note setting out empirical analysis of characteristics associated with cash reliance in the U.K. The policy statement also summarizes the responses the FCA received to its December consultation paper (CP23/29). Overall, most respondents supported the need for a new regulatory regime to protect access to cash. However, on certain issues, there were diverging views between consumer groups and different industry respondents, and the FCA received some challenge on specific rules.

In response to the feedback, the FCA has made changes to the rules it consulted on, including extending the period for banks and building societies to carry out cash access assessments and giving local communities more time to make their case. Firms will also be able to review the provision of identified cash services after two years. In addition, the FCA is providing an eight-week implementation period between publishing the policy statement and the new regime coming into force on September 18, 2024. This is designed to give designated entities time to familiarize themselves with the rules and establish the necessary processes to comply with them.

From September 18, 2024, banks and building societies will need to:

• assess cash access and understand if additional services are needed when changes are being made to local services;
• respond to local residents, community organizations and representative groups, who will be able to request an assessment of whether there are gaps in local cash access;
• deliver reasonable additional cash services, where significant gaps are found; and
• keep facilities, including bank branches and ATMs, open until any additional cash services identified are available. Where firms have already announced closures of cash access services taking place before the rules come into force, they will not be subject to the new regulatory regime. However, the FCA warns firms not to rush through closures during the implementation period as doing so would not meet the expectation that firms are required to communicate closures to customers at least 12 weeks before they take effect and would result in robust supervisory action.

The FCA has also updated its webpage on waivers and modifications to include a new section on its new access to cash rules.

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