What is the Financial Services Authority?

The Financial Services Authority is the main financial regulator in the United Kingdom.

It was created in 1997 by then Chancellor of the Exchequer (now Prime Minister) Gordon Brown, and empowered by the Financial Services and Markets Act 2000.

The FSA is an independent non-governmental body. It has four aims.

1. To maintain confidence in the market.

2. To promote public understanding of the financial system.

3. To protect consumers.

4. To reduce financial crime, for example market manipulation.

The Financial Services Authority also tries to ensure the UK is seen as a good place to do business, although this is not in its mandate.

Developments within British law and European law have a huge effect on the FSA.

Around 70% of their policy work is driven by the European Union.