The Financial Services Authority, for its acronym, FSA, was an independent body that supervised and regulated the financial services industry in the United Kingdom during the years 2001 and 2013.
The Financial Services Authority, also known as the Financial Services Authority or FSA, for its acronym in English, was a body that was born under the name “SIB”. That is, Securities and Investments Board. An independent body, fully funded by the finance industry, that oversaw and regulated the industry.
Subsequently, it changed its name and began to be called FSA, as we define it in this article and as it is called until its extinction.
Its main objective was to regulate and supervise the financial services industry in the UK.
Although it was independent, the governing board of this body was appointed by the British Treasury, while the organization was born promoted by the Government in Parliament.
Origin of the Financial Services Authority or FSA
The Financial Services Authority or FSA was born with the Financial Markets and Services Act of 2000, approved in the year cited by the Parliament of the United Kingdom.
Among other things, this law set in motion the creation of a new regulatory body, the FSA, whose purpose was to regulate the financial services industry, as well as to protect the people from disputes arising from the interaction between this industry and the financial services industry. consumers.
This organization was born as an independent body, but the governing board is reserved to be appointed by the British Treasury.
In short, this organization was born to replace the SIB, after the scandals that the industry experienced in the 1990s.
Functions of the Financial Services Authority or FSA
There were many functions that the FSA carried out during its years of activity.
All of them are included in the Financial Markets and Services Law, or the Financial Services Law.
However, we can summarize all these functions in two mainly, which were precisely those that gave meaning to the existence of this organism.
These were the role of the FSA as the main regulator of insurance, investment businesses and banking, among other financial services. And the Financial Ombudsman Service, which was offered by the FSA to resolve disputes, this being a free alternative to court.
But in addition to these functions, in 2010, the Financial Services Law establishes a new function. A function based on contributing to the protection and improvement of the stability of the UK financial system.
Until its abolition in 2013, these were the functions performed by the body.
When does the FSA disappear?
The functions carried out by the FSA are now carried out by two newly created bodies, which are the Financial Conduct Authority (FCA) and the Prudential Regulation Authority of the Bank of England.
Since 2013, the FSA does not exist, so now it is these two bodies that carry out the functions that we mentioned above.
In 2010, the British Government commented on the desire to want to abolish the FSA. But it was not until 2012 when, with the passage of the Financial Services Act of 2012, the FSA disappeared. In this way, also dissolving its functions between the two mentioned organizations, to which we must add the Financial Policy Committee of the Bank of England.
These three new bodies made up the new regulatory structure for the UK financial services industry. And the FSA, chaired by British businessman Lord Turner of Ecchhinswell, was gone forever.