First-E, the Internet retail bank owned by Dublin-based holding group Enba, has been engaged in a four-month "battle" to join the British ombudsman scheme and banking code of practice, according to Enba's chief executive, Mr Gerhard Huber.

Because the bank is regulated by the Banque de France in Paris and has no physical presence in Britain, it is precluded under the 1987 Banking Act from joining either scheme.

According to Mr Huber: "Internet banking is not covered by the statutes of these schemes. But who are they supposed to be for? Not the banking institutions but the British consumer. These statutes need to be lifted in order to protect consumers in the new banking economy."

No comment could be obtained from the British banking ombudsman.

Mr Huber was reacting to recent media coverage and concerns raised by the British Consumers' Association that First-E did not offer British customers the same level of protection afforded customers of traditional British banks.

First-E can trade in Britain under the EU's Second Banking Co-ordination Directive with the knowledge of the British Financial Services Authority.