What is the FSA?
Otherwise known as the Financial Services Authority, the FSA is an independent and non-governmental body. The institution received statutory powers and delegation by the Financial Services and Markets Act of 2000.
In layman’s terms, the FSA is actually an independent company that is tasked to regulate the financial services industry in the United Kingdom that was set up and founded by the UK government. Reporting to the Treasury Ministers, the FSA is accountable to the Parliament of the country. However, this does not mean that the FSA is funded by the government: instead the FSA receives funds from the firms that it works with and maintains.
The FSA has its policies, plans, objectives and rules listed on the official FSA website.
What are the objectives and goals of the FSA?
The organization’s objectives could be summarized as:
Helping to promote efficient, orderly and fair markets
Helping retail consumers get a fair deal
Improving business capability and effectiveness
What does the FSA do?
Since the FSA got statutory powers from the Financial Services and Markets Act of 2000 in December 2001, it has consistently been the only regulatory body for financial services in the United Kingdom. The organization is responsible for maintaining and handling a wide array of, if not most, financial services, markets, exchanges and firms. Regulation is done by setting up standards and policies that the financial firms must follow. In the event that financial companies fail to comply to the rules, the FSA will then be tasked to file related cases and suits to the financial firms involved.
What is the FSA’s scope of work?
The FSA can make rules, investigate and enforce powers in order for it to exercise its regulatory tasks. It aims to protect consumers and guarantee that they are given fair deal in their financial services.
For more information on:
- How does the FSA perform its job?
- How does the FSA approach risks?
- How does the FSA provide guidance to financial firms?