FSA

Financial Services Authority

Financial Services Authority

Introduction

In the world of commerce and finance, there are various regulatory agencies that aim to protect the interests of market participants and investors. FSA makes sure that it should be equal for all the firms participating in it. FSA is playing an important role in regulating financial firms by supervising functions with rules and regulations and it also avoids fake practices and ensures transparency (Nicolas, 2009, 72). We need only recall the case of Madoff-style fraud. So we can define the term "regulator" as an institution (government or private) responsible for the task of protecting investors through the application of financial laws, prevention of fraudulent business tactics, such as insider trading, and take action to maintain confidence in the financial system of their country.

The commodity markets, like stock exchanges, regulators have clearly defined who exercise control over brokers and market participants. Forex market is highly unregulated because of which this market is little fuzzy, but brokers of Forex focus to scrutiny by regulatory agencies in countries where they operate, although this is not widespread. There are well established financial regulators in United Kingdom and United States, in United States there are agencies like FDIC, FINRA, CFTC (Futures Trading Commission), Trade Commission Securities and Exchange and Securities Commission. These regulatory agencies are regulating the various financial markets, securities market, the pension fund managers, and the raw material. On the other hand United Kingdom has FSA (Financial Service Authority) as its regulatory authority. It regulates traders and Forex Brokers in financial service. Moreover Singapore, Japan and various other European Countries also have this type of regulatory. In this paper we have covered financial regulatory of United Kingdom (FSA).

Financial Regulatory Authority

Financial Services Authority United Kingdom (FSA UK) is the central authority for market surveillance of financial services to the UK. It is an independent non-governmental body responsible for regulation and oversight of all investment, banking and financial companies operating in the UK. In 1998 as a result of large-scale reform of the management of the financial market conducted by the Labour Cabinet, FSA functions were transferred to the Bank of England's supervision of banks and financial markets (www.uksaint.org). The "Financial Services Compensation Scheme" (FSCS) is the UK fund of is last resort for customers of financial services companies with approval in the United Kingdom, i.e., the fund may pay, if such companies do not or probably not in a position to the opposite to operate the company claims directed. Normally this is the case when it is no longer doing business or becomes insolvent was declared. The FSA is institutionally, functionally and financially independent from the state institution, its legal basis of the so-called Financial Services and Markets Act 2000.

Objectives

According to Financial Services and Markets Act, there are four main statutory objectives of the FSA which are also enshrined in law:

Maintaining confidence in the financial market

Promoting public understanding of the financial system

Ensuring consumer protection

Reduction of financial crime

The main objectives of the FSA are statutory trust in the ...