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
I need to prepare a monthly cash flow for a company with the given information, and need to comment on the current performance and the future sales increment. Then we need to find

How can we calculate ration analysis in financial management?? Determine the ration analysis? Need assignemt help on this topic

Q. Show the Graphic Presentation of Net Income Approach? Graphic Presentation of Net Income Approach: - Net Income approach is described graphically as follows: In the

I need a report on the topic Factors affecting Composition of Working Capital. Can you please assist me?

Q. What is Accumulated Depreciation? Accumulated Depreciation - Total DEPRECIATION pertaining to an ASSET or group of assetsfrom the time the assets were placed in services unt

1) Is foreign exchange risk systematic? What are the implications of your answer regarding corporate hedging policy with respect to foreign exchange risk? In your answers make sure

Cash Flow Valuation Technique The aim of this research is to empirically enquire into how to value a company using discounted cash flow valuation technique within its real lif

Differences between Hedge Funds and Mutual Funds Hedge Funds are extremely flexible in their investment options because they use financial instruments generally beyond the reach

The United States of America issues US Treasuries, which are negotiable government debt obligations. They are popular because they are backed by the full

Perform appropriate ratio analyses on the balance sheet and income statements of your company using techniques discussed in chapter 2 of your textbook. Compare your company to a c