FSA's Regulatory Regime

On the 30th November 2001 (N2), as a result of the Financial Services and Markets Act 2000 (FSMA) coming into force; the FSA assumed the majority of its statutory powers.

At that time the previous regulatory bodies, such as IMRO, SFA, PIA etc., were disbanded and the FSA became the ‘super-regulator’ with the most diverse, far-reaching and some say ambitious powers of any financial regulator in the World.

The FSA’s overall purpose is described in the four statutory objectives prescribed by the FSMA. The FSA has to report on these objectives to Parliament each year. The statutory objectives are:

• Maintaining market confidence
• Protecting consumers
• Promoting public awareness
• Reducing financial crime

The rules to which regulated firms have to now comply are contained in the FSA Handbook of Rules and Guidance. The FSA Handbook is divided into 5 regulatory `Blocks', that each contain a number of different Sourcebooks, Manuals or Modules.

Many of the rules have been adopted from a combination of previous rules and regulations of the former regulatory bodies. However, some are altogether new.

Complyport has extensive experience of this new regulatory regime, both inside the FSA and externally in industry and can advise on how to best meet the regulator’s expectations.