Banking Regulations and the Financial Services Authority
The FSA is the abbreviation of the Financial Services Authority which is a non-governmental body that oversees financial services in the UK.
The FSA came about in 1997 when the then Securities and Investment board changed its name to the Financial Services Authority. In 1998 the ongoing financial reforms were completed and the Bank of England passed over responsibility for banking supervision to the FSA.
Other significant milestones in the FSA history included May 2000 when the FSA also took over the listing responsibilities from the London Stock Exchange. In 2001 the FSA also took responsibility for the Building Societies Commission, Friendly Societies Commission, Personal Investment Authority and Securities and Futures Authority.
The FSA has a wide range of rule making, investigative and enforcement powers all based around a set of statutory objectives. They state that their strategic aims are:
- Promote efficient, orderly and fair markets
- Help retail consumers achieve a fair deal
- Improve their business capability and effectiveness
Regulation
The FSA regulates most financial services markets, firms and exchanges which include banks, insurance companies and stick exchanges. They set the standards that they need to meet and take action against firms that do not meet these standards. They aim to promote efficient and fair financial markets as well as help retail financial services customers get a fair deal.
Financial Crime
Another aim of the FSA is to reduce financial crimes in the UK and the use of financial services companies for illegal activities. This includes activities like money laundering, fraud and dishonesty as well as market abuse in the stock markets. This helps with their main objectives of protecting the consumer and building market confidence and public awareness.
Essentially the FSA is the public’s eyes, ears and police force for the financial services market. Financial services companies including banks have to register with them and adhere to their rules and regulations. They create the banking regulations that cover bank acounts, charges, insurance and other financial services available to the public.
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