FSA is consulting on new rules to make sure banks and building societies check customers are eligible to claim on insurance cover before selling them a “packaged bank account” (PBA). A PBA is a current account bundled up with insurance policies and other products, such as ticket discounts. FSA is concerned that one in five consumers has a PBA and that the product is not suitable for all customers. Sheila Nicoll said FSA is concerned that it is too easy for firms to sell customers things they do not understand or need. FSA proposes new rules in the Insurance: Conduct of Business Sourcebook (ICOBS) to ensure firms check that customers would be eligible to claim under insurance that forms part of a PBA and to set out the steps firms must take in advised sales of insurance policies in a PBA. It also seeks views on whether price transparency could be improved. It wants comments by 27 January 2012. (Source: Consultation Paper 11/20**: FSA Consults on ICOBS Rules on Packaged Bank Accounts)