Today, Nikhil Rathi, CEO of the Financial Conduct Authority (FCA), has responded to a letter written by Julie Marson, MP for Hertford and Stortford, and 56 cross-party MPs.
In their original letter, the MPs urged Mr Rathi to change the rules around banking hubs, allowing for more to open across the country.
Current FCA rules mean LINK is unable to recommend a banking hub until the last bank in town closes, subject to certain exceptions, risking a community’s access to cash. However, the MPs asked for LINK to be granted the power to operate on a case-by-case basis instead.
In his response, Mr Rathi said that he agreed with the MPs that “more must be done to… speed up delivery of new cash solutions to close any gaps in access”.
The FCA boss also shared concerns about the current ‘last bank in town’ rule.
Mr Rathi confirmed that he expects the FCA to publish their final rules in the third quarter of 2024. These will be formed following feedback from a range of stakeholders, including the letter that the MPs sent.
Commenting on the letter she received, Julie Marson said:
“I would like to thank Mr Rathi and his FCA team for responding to my colleagues and me.
“It is pleasing that the FCA recognise our concerns. I will continue to press so that LINK have the powers they need so that they can move away from last- or second-to-last bank in town rules and be able to consider each community based on its genuine access to cash need.
“Giving LINK this power would allow for Hertford, Sawbridgeworth and Bishop’s Stortford to be properly considered for banking hubs, something I think these towns either need now or may well need in the future.”
Last year, Mrs Marson secured a banking hub for Ware after all six of its high street banks closed in quick succession.