Part A Regulatory Matters, 3 The Conduct of Retail Banking and Investment Business

Subject(s):

Bank supervision — Investment business — Bank of England — UK Financial Conduct Authority (FCA) — UK Financial Services Authority (FSA)

The conduct of banks in relation to their retail customers used to be governed by two voluntary codes: the Banking Code (for personal customers) and the Business Banking Code (for corporate and business customers). This voluntary scheme for the regulation of retail business came to an end on 1 November 2009, when the Banking Conduct of Business section (BCOBS) of the UK Financial Services Authority (FSA, now UK Financial Conduct Authority (FCA)) Handbook came into force. This chapter examines the main requirements of BCOBS. It also considers the requirements applicable to banks in the field of investment services provided to retail clients, to the extent to which these are affected by the EU's Markets in Financial Instruments Directive.