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<p>The Government believes it is vitally important that the banking sector meets the
needs of vulnerable consumers. The nine largest personal current account providers
in the UK are legally required to offer fee-free basic bank accounts to customers
who do not have a bank account or who are ineligible for a bank’s standard current
account. The Treasury’s December 2017 publication shows that in total there are nearly
8 million basic bank accounts open in the UK, and that just over 900,000 new accounts
were opened between July 2016 and June 2017.</p><p> </p><p>The Government has also
given the Financial Conduct Authority (FCA), the independent conduct regulator for
the financial services sector, a statutory objective to protect consumers. The FCA
continually assesses whether the banks they regulate are meeting the rules regarding
the needs of vulnerable consumers.</p><p> </p><p>UK banks’ treatment of their customers
is governed by the FCA in its Principles for Businesses, as well as specific requirements
in its Handbook. The FCA's Principles require firms to conduct their business with
due skill, care and diligence, and to pay due regard to the interests of its customers
and treat them fairly.</p><p> </p><p>Understanding vulnerability is central to how
the FCA makes decisions. At the end of last year, the FCA published its ‘Approach
to Consumers’ Paper, which details how the FCA measures the effects of its actions
on consumers, particularly with respect to access and vulnerability. This was a consultation
and the FCA plans to publish its Final Approach to Consumers Paper later this year.</p><p>
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