What's the FSA in 2025? Understanding Its Role
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- The Financial Services Authority (FSA) regulations for equity release ensure that all firms providing these services must be authorised and follow rules on treating customers fairly and providing clear information.
- This authority protects your plan by setting standards and regulations, including product transparency and fair treatment of customers.
- In regulating these companies, it ensures they are authorized, operate in a clear and honest manner, and treat customers fairly.
- To confirm your provider is approved, you can search for their details on the Financial Services Register online.
- If your provider isn't regulated, they are operating illegally, and you may not be protected if something goes wrong.
The Financial Services Authority (FSA)1 was a body that oversaw the financial services industry in the United Kingdom between 2001 and 2013.
In 2013, they were split into the Financial Conduct Authority (FCA)2 and the Prudential Regulation Authority of the Bank of England (PRA).3
In This Article, You Will Discover:
An Overview to Financial Services Authority
In the United Kingdom, the Financial Services and Markets Act of 2000 created the Financial Services Authority (FSA).
In 1985, the Securities and Investments Board was established, which was subsequently renamed the Financial Services Authority in 1997 before being shut down in 2013.
The Financial Services and Markets Act (FSMA)4 established a framework for regulating the UK financial services industry.
The Financial Services Authority (FSA) was in charge of overseeing banks, financial advisers, insurance companies, and intermediaries, as well as mortgage market participants.
The Financial Services and Markets Act outlined policies to support market confidence in the UK financial systems.
The goal of financial stability was then added to the list.
These objectives were made possible by a set of established regulatory standards.
In accordance with growing responsibilities in the domestic and global financial sectors, FSA pursued transparency in policymaking and operations as well as political, public, and legal responsibility in the United Kingdom.
To that aim, Treasury and Parliament oversaw and analysed FSA activities, and the agency needed yearly reports to contain performance assessments toward achieving its goals.
The Dissolution of the FSA
The UK financial markets regulators decided to revamp their oversight structure after the financial crisis.
They did this by passing the Financial Service Act 2012 and dissolving the FSA beginning in April 2013.5
In order to continue with securities regulation, 2 new bodies were established: the Financial Conduct Authority and Prudential Regulation Authority at the Bank of England.
The Financial Conduct Authority Was Born
The Financial Conduct Authority was created to safeguard customers and encourage market integrity in the UK's financial system.
It also promotes competition in order to better serve consumers' interests.
The Financial Conduct Authority is funded by fines levied against the many firms that it regulates.6
Thus, there was an evolution in the equity release industry.
Common Questions
What Are the FSA Regulations for Equity Release?
How Does the FSA Protect My Equity Release Plan?
What Role Does the FSA Play in Regulating Equity Release Companies?
How Can I Confirm My Equity Release Provider is FSA Approved?
What Happens If My Equity Release Provider Isn't FSA Regulated?
In Conclusion
Today, the UK financial sector has never been safer, with the Financial Conduct Authority expertly overseeing the industry.
For equity release, the Financial Services Authority (FSA) works alongside the Equity Release Council which oversees that specific industry.
The FSA's role was to regulate the Uk’s financial services between 2001 and 2013.