| Every country that has a banking and finance system | | | | financial transactions and stock market exchanges |
| needs some sort of entity to regulate it... after all, | | | | within the UK . They also maintain websites that |
| simply allowing banks and financial companies to run | | | | detail how individuals and businesses within the UK |
| independently without any sort of system of checks | | | | can improve their financial capability, as well as |
| and balances would almost certainly lead to corruption | | | | upholding the rules of trade in regards to finances |
| and disaster. In the UK , the regulatory entity of the | | | | and securities when dealing with other countries or |
| financial system is the Financial Services Authority, or | | | | political unions. The FSA is also in charge of monitoring |
| the FSA, and is operated independently of the | | | | securities exchanges within the UK , and taking steps |
| government in an effort to offer a non-governmental | | | | to actively avoid market fraud and illegal trade.How |
| control of the financial industry.History of the FSAThe | | | | the FSA OperatesThe Financial Services Authority is |
| Financial Services Authority came into being as a | | | | an open company, limited by guarantee and financed |
| result of the Financial Services and Markets Act of | | | | by the financial services industry itself. The FSA is run |
| 2000. The first step in the creation of this act was | | | | by the FSA Board, which consists of a Chairman, the |
| the merger of banking supervision and investment | | | | Chief Executive Officer, three Managing Directors, |
| services regulation into an organization known as the | | | | and ten Non-Executive Directors, one of whom |
| Securities and Investment Board, or SIB, in 1997. In | | | | serves as the Deputy Chairman who is the lead |
| October of 1997, the SIB formally changed its name | | | | non-executive member. Overall policy is decided upon |
| to the Financial Services Authority, and the | | | | and set by the Board as a whole, though day-to-day |
| responsibility for banking supervision was transferred | | | | operations and staff management is performed by |
| to the FSA from the Bank of England a year later. In | | | | the CEO.FSA Board AccountabilityThe FSA Board is |
| May of 2000, the FSA took over the role of the UK | | | | appointed by the Treasury, and though it is not a |
| listings authority from the London Stock | | | | government agency in and of itself it is accountable |
| Exchange.When the Financial Services and Markets | | | | for its actions to the government and must report to |
| Act went into effect in 2001, several other financial | | | | the Ministers of the Treasury. Because of this, great |
| services were merged into the FSA and additional | | | | care is taken in the choosing of new Board members |
| responsibilities were granted to the organization (such | | | | should one retire of leave the Board.Due to the |
| as the ability to take action to prevent market | | | | nature of the FSA and the influence that it has upon |
| abuse.) In 2004, the FSA was granted the abilities of | | | | the economy of the UK, the Board is also |
| mortgage regulation following a decision by the | | | | accountable to Parliament through its dealings with |
| Treasury, and in January of 2005 the FSA took over | | | | the Treasury, and any indiscretions on the part of |
| regulation of the general insurance business to | | | | Board members will be dealt with accordingly either |
| implement the Insurance Mediation Directive.What the | | | | by the rest of the Board, the Ministry of the |
| FSA DoesIn short, the Financial Services Authority is | | | | Treasury, or Parliament itself. |
| in charge of monitoring and regulating all of the | | | | |