Working of FSA
The FSA Board is responsible for the management of FSA. It is appointed by the Treasury. It consists of a chairman, a chief executive officer, three managing directors and nine non-executive directors. The non-executive directors include, a lead non-executive member, a deputy chairman and a deputy governor (financial stability) of the Bank of England (designated as an ex-officio director).
The Board works on overall policy of FSA. The day-to-day decisions and management of the staff are taken care of by the executive. The non-executive directors check whether FSA is operating efficiently and economically, financial control mechanism and its effectiveness, and set the pay of the executive members of the Board.
It is an open and transparent organization providing full information to firms, consumers and others about its objectives, plans, policies and rules through its website.
It is a regulatory body regulating the entire financial services industry in the UK. It 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 require standards. For this, it is provided with a wide range of rule-making, investigatory and enforcement powers.