The financial services authority in the united kingdom, Financial Management

The Financial Services Authority in the United Kingdom:

The Financial Services Authority (FSA) in the United Kingdom (UK) is the financial watchdog. It is a company limited by guarantee and financed by the firms it regulates. It is an independent non-governmental body having been given statutory powers under the Financial Services and Markets Act 2000 (FSMA). The government decides the overall scope of the FSA's regulatory activities and for its powers. It has been the single market regulator for financial services in the UK since December 2001. It is accountable to Treasury Ministers and through them to the UK Parliament.

The Treasury of the UK

The Treasury is the UK's Economics and Finance Ministry. It formulates and implements the government's financial and economic policy. It's objective is to improve the sustainable growth rate, rising prosperity and quality of life with economic and employment opportunities for all people in the UK.

Establishment and Development of FSA

In May 1997, the Chancellor of the Exchequer announced the reform of financial service regulation in the UK and the creation of a new regulator. It manages banking as well as securities industries which is known as Securities and Investments Board (SIB). The SIB formally changed its name to the Financial Services Authority (FSA) in October 1997.

The FSA regulates most financial services markets, exchanges, and firms. It sets the standards that they must meet and can take action against firms if they fail to meet the required standards.

The first stage of the reform of financial service regulation was completed in June 1998, when the responsibility for banking supervision was transferred to the FSA from the Bank of England. In May 2000, the FSA took over the role of the UK Listing Authority from the London Stock Exchange. In fact, the FSA became a single regulator for financial services in the UK since December 2001, when it was provided with statutory powers by the FSMA.

Soon after FSMA received Royal Assent in June 2000 and was implemented on 1 December 2001, it transferred to the FSA the responsibilities of several other organizations:

  • Building Societies Commission.
  • Friendly Societies Commission.
  • Investment Management Regulatory Organization.
  • Personal Investment Authority.
  • Register of Friendly Societies.
  • Securities and Futures Authority.

In addition, the legislation entails some new responsibilities like initiating action to prevent the market abuse. In October 2004, following a decision by the Treasury, it took upon the responsibility for bringing mortgage regulation. In January 2005, to implement the Insurance Mediation Directive in accordance with the Government announcement in 2004, it took over regulation of general insurance business.

 

Posted Date: 9/11/2012 2:33:21 AM | Location : United States







Related Discussions:- The financial services authority in the united kingdom, Assignment Help, Ask Question on The financial services authority in the united kingdom, Get Answer, Expert's Help, The financial services authority in the united kingdom Discussions

Write discussion on The financial services authority in the united kingdom
Your posts are moderated
Related Questions
Financial analysis The purpose of financial statements is to provide information to all the users of these accounts to assist them in their decision-making. It has to be concer

Chrysler decides to avoid the problems associated with exporting autos to Japan by building a plant in Japan. The cost is expected to be $1 billion with $500 million to be spent no

Q. Demerits of profitability index method? Demerits of PI method:- (i) This method is complicated to understand and implement (ii) Calculations in this method are complex

I am trying to solve this formula: 2/10, net 30. In the book I am reading they have 2% x 360 ------- ------ = 2.04% x 18=36.72% 100-2% (30-10) I want to know how the

A. Joe wants to invest in Nebraska Municipal 6% GOB that are rated AA. Joe's tax rate is usually between 28% .  GE plans to sell AA rated 8% coupon bonds. Compute Joe's after-tax i

Read the journal article Lafferty, B. A., & Hult, G. T. M. (2001) ‘A synthesis of contemporary market orientation perspectives’, European Journal of Marketing, 35 (1/2), pp. 92–109

#how to calculate initial investment cash flows ..

This is the part of after-tax personal income that is not spent.

given just the sales and profit values, how is the break-even sales calculated?

What is the decision rule for accepting or rejecting proposed projects when using net present value? When going with the net present value decision rule any project with a net