FSA UK – Background & Structure
This information is provided to give members of the Cameron Farley Action Group a better understanding of what the FSA is, what it does and how it was formed. It is useful to our cause to fully get to grips with the purposes and objectives of the Financial Services Authority because only through looking at their statutory responsibilities can we find out if they have neglected any of their duties towards us through their actions surrounding Cameron Farley Limited. This information is provided as an expression of personal opinion and some has been sourced from third parties, as such it may contain errors or outdated information for which we accept no responsibility.
The UK Financial Services Authority (FSA) is an independent non-governmental organisation, as well as being a company limited by guarantee. It regulates the financial industry in the UK and it is a quasi-judicial organisation. The board of the FSA is appointed directly by the Treasury.
The FSA’s head office is in Canary Wharf in London and they have another office in Edinburgh. The FSA is renowned for being the brain child of the then Chancellor of the Exchequer Gordon Brown.
The UK FSA bears the same form as any other UK company. It is ‘limited by guarantee’ and carries a registered company number of 01920623. The company was formed and incorporated on the 7th June 1985 but the original name given to it at that time was “The Securities and Investments Board Ltd” (SIB) which was created by the UK Chancellor who is the one and only member of the company. The Chancellor handed to the FSA a list of specific statutory (backed by law) regulatory powers under what was then called the Financial Services Act 1986.
Following a whole host of debacles and scandals throughout the 90s which peaked with the sudden and unexpected demise of Barings Bank, there was a strong motivation to cease all self-regulation within the financial services sector and the decision was taken to consolidate regulatory responsibilities which had previously been divided up amongst multiple regulators.
In June 1994 the Securities and Investments Board Ltd revoked the recognition of The Financial Intermediaries, Managers and Brokers Regulatory Association (FIMBRA) as a Self-Regulatory Organisation (SRO). They did however permit a period of transition in order to give time for continuity of regulation during which the members could transfer to the Personal Investment Authority (PIA), which in turn was absorbed into it.
On 28th October 1997 the SIB changed its name to the Financial Services Authority (FSA UK) and now boasts statutory powers afforded to it by the Financial Services and Markets Act 2000, which superceded the previous legislation and came into effect on 1 December 2001. As well as regulating all the insurance companies, financial advisers and banks the Financial Services Authority began regulating all mortgage business on 31 October 2004 and general insurance business (excluding travel insurance) intermediaries beginning on 14 January 2005.
To continue reading about the FSA please go to Page 2
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