The Financial Services Authority (FSA) 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) and Prudential Regulation Authority of the Bank of England (PRA).
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) 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 stated that 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
In the aftermath of the financial crisis, regulators in the United Kingdom decided to change the structure of the overseeing of the financial markets, passing the Financial Service Act 2012 and dissolving the FSA beginning in April 2013. 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 in order to safeguard customers and encourage market integrity in the UK’s financial system while also promoting competition in order to better serve consumers’ interests. The Financial Conduct Authority is funded by fines levied against 58,000 firms that it regulates.
Interesting Read: The Evolution of Equity Release
Today, the UK financial sector has never been safer, with the Financial Conduct Authority expertly overseeing the industry. For equity release, they work alongside the Equity Release Council who oversees that specific industry.
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