Financial Services Authority
From MarketsWiki
| Financial Services Authority | |
| |
| Founded | 1997 |
|---|---|
| Headquarters | London, England |
| Products | Financial services regulator |
| Web site | http://www.fsa.gov.uk/ |
The Financial Services Authority (FSA) is an independent non-governmental body that regulates the financial services industry in the UK. It was granted statutory powers by the Financial Services and Markets Act of 2000.
The FSA is accountable to UK's Treasury Ministers, and through them to Parliament, though it is operationally independent of government and is funded entirely by the firms it regulates. An open and transparent organization, the FSA provides full information for firms, consumers and others about its objectives, plans, policies and rules. That includes information specifically for consumers on financial products, regulation and their rights.
| This page is sponsored by... |
 |
FSA has been given a wide range of rule-making, investigatory and enforcement powers to meet a few statutory objectives:
- Promote efficient, orderly and fair markets;
- Help retail consumers achieve a fair deal;
- Improve business capability and effectiveness.
Structure
The Treasury appoints the FSA Board, which currently consists of a chairman, a CEO, three managing directors, and nine non-executive directors. The Board sets FSA's overall policy, but day-to-day decisions and management of the staff are the responsibility of the Executive.
History
In May 1997, the Chancellor of the Exchequer announced the reform of financial services regulation in the UK and the creation of a new regulator. This involved merging banking supervision and investment services regulation into the Securities and Investments Board (SIB). The SIB formally changed its name to the Financial Services Authority in October 1997.
The first stage of the reform of financial services regulation was completed in June 1998, when responsibility for banking supervision was transferred to the FSA from the Bank of England. In May 2000 the FSA took over the role of UK Listing Authority from the London Stock Exchange. The Financial Services and Markets Act, which received Royal Assent in June 2000 and was implemented on in December 2001, transferred the responsibilities of several other organizations to the FSA:
- Building Societies Commission
- Friendly Societies Commission
- Investment Management Regulatory Organization
- Personal Investment Authority
- Register of Friendly Societies
- Securities and Futures Authority
In addition, the legislation gave FSA some new responsibilities, in particular taking action to prevent market abuse.
In October 2004, following a decision by the Treasury, FSA assumed responsibility for mortgage regulation. In January 2005, FSA also took on regulation of general insurance business.[1]
References
- ↑ FSA: Who Are We. FSA. Retrieved on January 2, 2008.
