Every Friday we aim to post an answer to a FAQ about mortgages, tax, investments, money matters, business or retirement. You can have your say too. Send an email with your FAQ to [email protected]
This does not constitute advice and advice should be sought in all instances before acting on it.
Q: What is the role of the Financial Services Authority?
Answer: The Financial Services Authority (FSA) was an independent non-governmental body, that was responsible for regulating the financial services industry in the UK from 2001 to 2013 and was originally founded in 1985 as the Securities and Investments Board.
Even though the board was appointed by the government, the FSA operated completely independently and was funded by the financial entities they regulated.
After the Financial Crisis in 2007/08, the government was under pressure from the public outcry as a result of the supposed failure of bank regulation. In response, they decided to disband the FSA and restructure financial regulation. In 2013, two new agencies were formed: The Financial Conduct Authority (FCA) and The Prudential Regulation Authority (PRA).
The FCA is now responsible for regulating the UK’s financial services industry. Their goal is to provide protection for consumers, to strengthen the market by ensuring the stability of the industry, and to foster competition between financial services providers.
The PRA is part of the Bank of England and is responsible for the prudential regulation and supervision of approximately 1,500 banks, building societies, credit unions, insurers and major investment firms. Their primary concern is to prevent the potential harm financial firms can inflict on financial instability so they aim to set standards and supervise financial institutions on a firm by firm basis.
If you need clarification on the responsibilities of each of these organisations, don’t hesitate to reach out to us.
The specialists at Dental and Medical Financial Services can help you understand their roles within the industry and direct you to the right agency should you need their expertise.