Financial Services Authority
Purpose:
The
Financial Services Authority (FSA) is an independent body that regulates the financial services industry in the
UK.
Founded:
Gordon Brown, the Chancellor of the Exchequer, announced the reform of financial
services regulation in the UK and the creation of a new regulator on 20 May 1997. It has taken on the work of a number of previous organisations
and was given statutory powers by the Financial Services and Markets Act 2000.
Based:
25
The North Colonnade, Canary Wharf, London
Structure:
The FSA is
a non-governmental body. The board is appointed by Her Majesty’s Treasury, and consists of: a chairman, a chief executive, three managing directors
and 11 non-executive directors. The board sets overall policy, but the day-to-day decisions and management of staff are the responsibility of the
executive.
Chairman:
Callum McCarthy
Chief Executive:
John
Tiner
Managing directors:
David Kenmir - regulatory services, Clive Briault - Retail Markets, and Hector Sants - wholesale and
institutional markets
Statutory Objectives:
To maintain confidence in the financial system.
The FSA
supervises exchanges, settlement house and other market infrastructure providers; conducts market surveillance; and monitors transactions.
To promote public understanding of the financial system.
The
FSA helps people gain the knowledge, aptitude and skills they need to become informed consumers.
To secure the right degree of protection for customers.
The FSA
vets companies to ensure only those satisfying the necessary criteria (including honesty, competence and financial soundness) can engage in regulated
activity. Once authorised, these companies remain the subject of monitoring by the FSA to ensure they are meeting these standards. In the event of
serious problems the FSA will move to discipline or prosecute offenders.
To help reduce financial crime.
The FSA concentrates on
tackling three main types of financial crime: money laundering, fraud and dishonesty, and criminal market misconduct such as insider dealing.
UK Listing Authority:
The FSA is the competent
authority for listing, referred to as the
UK Listing Authority (UKLA), and maintains the Official List.
Sally Dewar, director of the FSA's markets division is responsible for the UKLA. To comply with
its responsibilities, the FSA has created a set of rules known
collectively as the
Listing Rules.
The UKLA reviews and approves all listing particulars which companies put together to have
their securities admitted to the list. The UKLA then seeks to ensure that listed companies comply with their ongoing obligations under the listing
rules. This includes providing a regular flow of information into the market. The UKLA has the power to impose a financial penalty on a listed company
or director where the listing rules have been broken. Companies will occasionally be suspended from the official list if they have not made enough
information available to the market: this protects investors from trading without full and complete information about the company.
Links
Principles of Good Regulation
UK Listing Authority
FSA Handbook
Listing Rules
Prospectus Rules
Disclosure Rules
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