On 24 July 2024, the Financial Conduct Authority (FCA) published Policy Statement PS24/8, which sets out the final rules for its access to cash regime.

Background

The FCA consulted in December 2023 on establishing an access to cash regulatory regime, which would require banks and building societies designated by the Government to assess and fill gaps, or potential gaps, in access to cash. These proposals followed the granting to the FCA of a new remit and powers under the Financial Services and Markets Act 2023, to ‘seek to ensure reasonable provision’ of cash deposit and withdrawal services for personal and business current accounts across the UK.

The final rules

Under the new rules, banks and building societies will be required to:

  • Assess cash access and understand if additional services are needed, when changes are being made to local services.
  • Respond to local residents, community organisations 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.
  • Keep facilities, including bank branches and ATMs, open until any additional cash services identified are available.

The final rules reflect some changes from the draft rules consulted on, including a longer period for banks and building societies to carry out cash access assessments (to give local communities more time to make their case) and an ability for firms to review the provision of identified cash services after 2 years.

Fourteen banks and building societies have been designated by the Government to deliver this new cash access system.

Next steps

The rules will enter into force on 18 September 2024.

The FCA flags that firms designated by the Government, and therefore subject to the new access to cash regime, must identify gaps in cash provision, assess a wide range of local needs, and provide additional cash access services promptly if assessments find a significant gap in provision.

For firms that have already announced closures of cash access services taking place before the rules come into force, these will not be subject to the new regime. However, the FCA emphasises that firms should not rush through closures before 18 September, as they should (under Finalised Guidance 22/6) communicate closures to customers at least 12 weeks before they take effect.