Any country with a banking and finance system requires some form of regulator… after all, allowing banks and financial companies to function independently without some sort of check and balance system will almost certainly result in corruption and catastrophe. The Financial Services Authority, or FSA, is the financial system’s regulatory body in the United Kingdom. It is run independently of the government in order to provide non-governmental oversight of the financial sector.If you’re looking for more tips, Padgett Business Services | Clifton Park has it for you.
The FSA’s History
The Financial Services and Markets Act of 2000 culminated in the establishment of the Financial Services Authority. The merger of banking supervision and investment services regulation into the Securities and Investment Board, or SIB, in 1997 was the first step in the establishment of this act. The SIB was renamed the Financial Services Authority in October 1997, and the responsibility for banking supervision was transferred from the Bank of England to the FSA a year later. The FSA took over the position of UK listings authority from the London Stock Exchange in May of 2000.
Several other financial institutions were incorporated into the FSA when the Financial Services and Markets Act went into force in 2001, and the company was given additional responsibilities (such as the ability to take action to prevent market abuse.) Following a decision by the Treasury in 2004, the FSA was given mortgage-regulatory authority, and in January 2005, the FSA took over general insurance regulation to enforce the Insurance Mediation Directive.
What Does the FSA Do?
In a nutshell, the Financial Services Authority is responsible for overseeing and controlling all financial transactions and stock markets in the United Kingdom. They also maintain websites that detail how individuals and companies in the UK may enhance their financial capacity, as well as maintaining the rules of trade when negotiating with other countries or political unions in terms of finances and securities. The FSA is also in charge of regulating the UK’s stock markets and takes measures to discourage market manipulation and illicit trading.