The Money Blog

The FSA is an independent body regulating the UK financial services industry. The FSA has three main aims:

The first is maintaining confidence in the UK financial system by supervising exchanges, settlement houses and other market infrastructure providers; conducting market surveillance; and transaction monitoring.

The second is promoting public understanding of the financial system to help people gain the knowledge, aptitude and skills they need to become informed consumers, so they can manage their financial affairs more effectively.

The third is securing the right degree of protection for consumers. Vetting entry aims to allow only those firms and individuals satisfying the necessary criteria (including honesty, competence and financial soundness) to engage in regulated activity. Once authorized, they expect firms and individuals to maintain particular standard and monitor how firms and individuals meet them. Where serious problems arise they investigate and, if appropriate, discipline or prosecute those responsible for conducting financial business outside the rules. They also use their powers to restore funds to consumers.

Their work focuses on three main types of financial crime:
• Money laundering
• Fraud and dishonesty
• Criminal market misconduct such as insider dealing.

They also consider
• The need to use resources in the most economic and efficient way
• The responsibilities of the management in regulated firms
• The need to balance the burdens and restrictions on firms with the benefits of regulation for consumers and the industry
• The need to allow innovation
• The international character of financial services and markets and the UK’s competitive position
• The value of competition between financial firms