Rules governing the administration of accounts and transactions such as debit and credit card payments have changed as a result of the new regime - and we all need to be aware of them.
The FSA says that anyone with a bank account or debit, credit or prepaid card, will be affected by the change.
So how is your relationship with your bank, building society or card provider going to change due to the FSA taking over banking regulation?
What are the main changes to bank and building society accounts?
One of the main advantages of the new regime for savvy consumers is that banks and building societies offering instant-access savings accounts and current accounts must now notify customers at least two months before reducing credit interest, or hiking overdraft rates.
Electronic transfers must also be completed by close of business the following day - although banks struggling to put the necessary systems in place have secured a loophole that allows them up to three working days (by prior agreement via their account terms and conditions) until January 1, 2012.
If you are transferring cash into a different currency, the transaction may also still take more than one working day.
The rules on fraudulent losses that involve the use of your PIN have also changed.
In the past, banks have often tried to wriggle out of refunding customers targeted by criminals who use their password or PIN by arguing that the customer must have acted negligently to allow their password or PIN to get into the hands of fraudsters
However, under the new system, the onus is now on the bank to prove that the customer behaved carelessly, or deliberately fraudulently. Unless it can do this, it will have to refund your account regardless. To prevent the banks dragging their heels on refunds, the new rules also state that any investigations must be completed within a few days.
What other changes are taking place?
Other features of the changes in regulation include a requirement for banks to offer greater transparency; giving customers all the information they need about their accounts upfront.
And if your current or savings account pays interest, that must be paid from the moment the bank receives funds being paid into the account.
Shouldn't my bank or building society have informed me about this?
You may have already received a leaflet from your bank or building society telling you about changes to your terms and conditions as a result of the Payment Services Regulations, including new information about the way your bank or building society will do business with you. If you have an online account, this information may also be relayed in message or email form.
I understand that overseas transfer rules are also changing. What is happening here?
The main changes in this area involve greater security for consumers.
For a start, payment service providers other than banks, building societies and e-money issuers need to become authorised or registered with the FSA as a 'payment institution' by 30 April 2011. This will enable consumers to vet companies before using them, and will also mean they can complain to the Financial Ombudsman Service should something go wrong.
Large financial companies such as credit card issuers must also keep customers' funds separate from their own - as long as the amount being transferred is £50 or more. This is to protect customers' money should firms not covered by the Financial Services Compensation Fund go under.
But beware: While small firms are also encouraged to do this under the new rules, it is not an FSA requirement, so you should check out any smaller companies before handing over your cash.
Overseas transfer companies are also now required to provide customers with information about how long transfers will take, costs and exchange rate details before asking the consumer to commit to a deal.
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