The Financial Services Authority

The Financial Services and Markets Act [FSMA] gained Royal Assent on 14 June 2000 and the Financial Services Authority [FSA] gained its full powers at a date known as N2 - which was midnight 30th November 2001. FSA embraces previous financial service regulators including the Building Societies Commission, the Friendly Societies Commission, the Registry of Friendly Societies, the Insurance Directorate of the Department of Trade and Industry, Investment Managers Regulatory Organisation, Personal Investment Authority, Securities & Futures Authority, the surveillance department of the Bank of England, and Securities and Investment Board.

FSA is the sole regulator of financial services in the UK. Its statutory responsibilities are:

• to maintain confidence in the UK financial system
• to promote public understanding of the financial system
• to secure the appropriate degree of protection for consumers
• to reduce the scope for financial crime.

Depending on your job function, the FSA will require you to prove that your knowledge is up to date, initially through qualifications and then continuing professional development such as attending seminars, training on new products etc.

The FSA will also monitor your firm as a whole to make sure that all the rules, such as those for customer protection and anti-money-laundering initiatives, are being complied with. Most dealings with them are routine, but it must be remembered that their powers are extensive — individuals and firms who do not meet their standards can face severe penalties.

FSA's governing body is appointed by and answerable to the Treasury but the body is entirely funded by the industry which it regulates. For more information contact www.fsa.gov.uk