Who are the Financial Services Authority (FSA)

The Financial Services Authority (FSA) is a non-governmental, independent organisation that was awarded statutory powers by the Financial Services and Markets Act 2000 (FSMA). They are a company that is limited by guarantee and have been financed by the financial services industry. The board of the FSA is appointed by the Treasury and consists of an Executive chairman along with three Managing Directors and 11 non-executive directors, led by the Deputy Chairman. The task of the board is to set out the FSA's overall policy. However, day-to-day management of the staff and decisions are the Executive's responsibility.

http://www.fsa.gov.uk/

The FSA was set up to be an independent body with the aim of regulating the financial services industry in the UK with four main aims.

The first aim is to maintain the UK public's confidence in the financial system in the UK. The FSA supervise settlement houses, exchanges and other market infrastructure providers, surveying markets and monitoring transactions.

The second aim is to increase the public's understanding of how the financial system works, which in turn will increase confidence in it. People can become informed consumers if they can gain knowledge, aptitude and skills which will help them to manage their financial affairs effectively.

The third aim is to secure the correct degree of protection for consumers. Firms and individuals who wish to engage in regulated activity need to satisfy some necessary criteria, such as competence, honesty and financial security. The FSA vet all entries to ensure this. They then monitor how the individuals and the firms maintain those standards after authorisation. Should serious problems arise, they will investigate and either discipline or prosecute should that be appropriate. Funds can be restored to consumers under the FSA's powers.

The fourth aim is to reduce financial crime. Three types of financial crimes are covered; Fraud and dishonesty, money laundering and market misconduct such as insider dealing.

The FSA bear in mind certain principles whilst working towards the above objectives. Firstly, they try to use resources in the most efficient and economic way as a non-profit making organisation. They also try to understand the responsibilities of management in regulated firms. Thus, the burdens and restrictions placed upon the regulated firms are balanced with the need for and benefits of regulation for the industry and in particular for consumers.

The financial services industry need to be able to innovate with new products and flavours. This can only be achieved with a little bit of sensible leeway provided by the FSA. Furthermore, the FSA have to allow for the international character of the financial services and markets, and the need for the UK's firms to be able to compete internationally. Finally, the FSA will bear in mind the need and value of competition between financial firms.

The helpline number is.
FSA Consumer Helpline: 0845 606 1234

 

 

 

 

 

 

 

© AskFinancially.com 2008

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