* To apply to 2009 results
* Regulator eyes option of disclosure templates
* Invites comments, expects improvements
(Adds details, background)
LONDON, Oct 26 (Reuters) - UK banks, accused of being too opaque and complex in the run-up to the financial crisis, said on Monday they plan to simplify financial reporting and make it easier for investors to compare their performance.
A code announced by the British Bankers' Association promises to avoid the kind of "box-ticking" disclosure criticised by regulators and better balance the appetite for detail with reducing needless information.
It also aims for more consistency across the banking sector, despite differences in business models and financial exposures.
"UK banks recognise that there is a level of public interest in their disclosure that extends to other stakeholders in addition to investors," the BBA said in a statement.
Banks that have signed up to the code ahead of 2009 year-end results include Barclays, HSBC, Lloyds Banking Group, Nationwide, Standard Chartered, Royal Bank of Scotland and Abbey, part of Santander.
Britain's Financial Services Authority said it backed a code, but warned it would consider turning to a pre-determined, or "template", format if improvements were not seen in disclosure of 2009 annual results.
"When applying this code to their 2009 year-end accounts, the FSA expects firms to achieve significant improvement in the quality and comparability of disclosures," Paul Sharma, director for prudential policy at the FSA, said.
The FSA, which launched a discussion paper on financial reporting on Monday, said it was consulting the industry on whether the banks' code was enough or whether templates would be more effective in forcing a shake-up in the sector.
Banks have so far opposed the idea of mandatory disclosure requirements and the FSA itself cautioned they could potentially add complexity without real disclosure.
Regulators and international bodies including the International Monetary Fund and the Bank of England have said banks should continue to produce the more frequent, more detailed disclosure seen since the crisis.
The FSA said on Monday it supported this effort, opposing non-company specific disclosure and excessive detail on elements which only serve to make results more complex.
It said it would like to see reporting that is sufficiently granular to allow exposures -- for example to high risk asset classes like CDOs -- to be analysed meaningfully to foster investor confidence.
Responses to the FSA's discussion paper are due by the end of April, after banks' annual results. (Reporting by Clara Ferreira-Marques; Editing by David Cowell)