The Financial Conduct Authority's Banking Conduct of Business Sourcebook (BCOBS) came into force on 1 November 2009.
BCOBS applies to firms carrying out the activity of accepting deposits from banking customers in the UK, for example by providing saving and current accounts.
BCOBS contains rules and guidance on:
communications with banking customers and financial promotions;
distance communications, including the requirements of the Distance Marketing Directive and E-commerce Directive;
information to be communicated to banking customers, including appropriate information and statements of account;
post sale requirements on prompt, efficient and fair service, moving accounts and lost and dormant accounts;
unauthorised and incorrectly executed payments; and
cancellation, including the right to cancel and the effects of cancellation.
BCOBS applies to accepting deposits to the extent that it does not overlap with the requirements of the Payment Services Regulations (PSRs) relating to payment transactions and payment accounts.
This means that, broadly:
- where a retail banking service is not a payment service within the scope of the PSRs, BCOBS applies in full;
- where a retail banking service is a payment service within the scope of the PSRs, parts of BCOBS would not apply.
BCOBS is available on the FCA Handbook website -
The Association, British Bankers' Association and UK Payments have produce industry guidance to help building societies and banks to comply with some of the BCOBS requirements.
The industry guidance is available below -
Industry Guidance on BCOBS (Sept 2013)