Financial Services Authority

On 1 December 2001 the Financial Sevices Authority FSA assumed its full powers and responsibilities under the Financial Services and Markets Act 2000.

It is the single statutory financial regulator in the UK having taken over the work of a total of nine previous watchdog bodies with responsibilities ranging from covering the sale of endowments and insurance to controls on City dealers trading in derivatives.

Almost all kinds of financial services firms must get permission authorisation from the FSA to do business in the UK.

The FSA regulates banks building societies credit unions insurance and investment firms stockbrokers and fund managers and independent financial advisers.

It is also responsible for the Lloyds Insurance Market.

The FSA has taken over the work of the following organizations

• Friendly Societies Commission FCS - friendly societies
• Insurance Directorate of the DTI DTI - insurance
• Investment Management Regulatory Organization IMRO - investment management
• Personal Investment Authority PIA - retail investment business
• Registry of Friendly Societies RFS - supervision of credit unions
• Securities & Investments Board SIB - investment business
• Supervision & Surveillance Division of the Bank of England - banking and the money market

In addition to authorising and monitoring financial services firms it has enforcement powers to investigate discipline and prosecute.

It also has the power to impose unlimited fines on anyone who commits market abuse - for example buying shares in a company in advance with inside knowledge of a forthcoming takeover.

The regulator has specific responsibilities to consumers aiming to help people become better informed about financial matters so that they can manage theirfinancial affairs more effectively.

The FSAs consumer helpline is available on 0845 606 1234 and the watchdog also has a dedicated consumer-orientated website Click here

2009-02-17 00:00:00 © Moneyextra.com