Aims of financial services authority, Financial Management

Aims of FSA

The aim of FSA is to promote efficient, orderly and fair markets, and to help retail consumers to get a fair deal. In fact, FSA has set out its aims under three broad headings, i.e., Promoting efficient orderly and fair markets

It works to promote efficient, orderly and fair markets which affects both wholesale and retail firms. Where it has discretion, it works with the industry to address market failures - preferring market-based solutions to regulatory intervention wherever possible. Where its work is non-discretionary, for example, when EU directives drive it, it devotes significant resource to assisting the Treasury and the Lamfalussy Committees - the Committee of European Securities Regulators (CESR), the Committee of European Banking Supervisors (CEBS) and the Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS) - in negotiations.

For firms, the most significant European measures, which they will continue to need to prepare for, are the Markets in Financial Instruments Directive and the Capital Requirements Directive.

Helping retail consumers to achieve a fair deal

One of the key priorities of FSA is to make the retail markets function more effectively and therefore, help retail consumers achieve a fair deal. To achieve this aim it focus on what four key features of effective retail markets:

  • Capable and confident consumers;
  • Clear, simple, and understandable information available for, and used by, consumers;
  • Soundly managed and adequately capitalized firms that treat their customers fairly; and
  • Risk-based and more principles-based regulation, through firm specific and thematic supervision and policy.

Its move towards a more principle-based approach to regulation will bring in benefits for firms as well as consumers. It will provide the firms with greater flexibility to determine how best to run their business and how to deliver fair treatment to customers in a way, which is consistent with commercial objectives. It will also enable the firms to compete and innovate more effectively in areas such as product design and customer service.

Improving the business capability and effectiveness

The third strategic aim of FSA is to improve business capability and effectiveness. This covers not only the investment it makes in employees, internal processes and infrastructure, but also making it easier for firms, consumers, and other stakeholders also. The Regulatory Services Business Unit leads this work.

One of the core activities of this Business Unit is to provide services to external stakeholders. For the benefit of its consumers, FSA runs contact center, which answers queries about the financial services regulatory system and its role and activities, and distributes extensive range of information to them on request. The Business Unit handles most of the regular interactions with firms, which include the incoming correspondence and calls to the Firm Contact Center, applications for waivers, variations of permission, cancellations, changes of controller and payment of fees.

 

Posted Date: 9/11/2012 2:35:17 AM | Location : United States







Related Discussions:- Aims of financial services authority, Assignment Help, Ask Question on Aims of financial services authority, Get Answer, Expert's Help, Aims of financial services authority Discussions

Write discussion on Aims of financial services authority
Your posts are moderated
Related Questions
S pecifications Following are the various specifications that we need to apply while creating contracts. If the goods to be procured are covered under Bureau of Indian

How do risk-averse investors compensate for risk when they take on investment projects? Due to the risk aversion, people demand higher rates of return for taking on higher-risk p

Bonds pay interest periodically at a pre-specified rate of interest. The annual rate at which this interest is paid is known as the coupon rate or simply the coup

The recent financial reform in the Public Sector that had been implemented in Fiji is essential. Critically evaluate this statement.

You have the following information about rates in London for Eurocurrency loans of one-year duration, the exchange rate between the USD and euros, the currency in which you want fi

Constant Duration To improve a buy and hold strategy a constant average duration is imposed for the managed portfolio during the full interest rate cy

How would you explain transaction exposure? How is it different from economic exposure? Answer:Transaction exposure is the sensitivity of comprehend domestic currency values of

Expected volatility is a major factor that affects the value of an option. Expected volatility of an option on bond is referred to as 'expected yield volatility'. The

Accounting Standards The paradigm shift in the economic environment during last few years has led to increasing attention being devoted to accounting standards as a means towa

Explain the difference among the discounted free cash flow model as it is applied to the valuation of common equity and as it is applied to the valuation of whole businesses. The