The end of the Financial Services Authority, What does this mean for financial firms?

18 Apr

The FSA is set to be eradicated in April, what effect will this have on the financial services market, if any?

A quick history of the FSA

The judicial body is responsible for controlling the monetary services market, although it runs individually of the government, its members are selected by the government.

Formed in 1985, the FSA is structured as a company restricted by guarantee and is funded completely by costs charged to the finance industry, it presently utilizes almost four thousand staff members.

It exercises its powers based on the Financial Solutions and Markets act of 2000, in addition to managing the activities of banks, insurance companies and monetary advisers the authority also controls the financing of mortgages by major financial firms.

Abolition

Chancellor the Exchequer, George Osbourne revealed plans to re-organise the service, basically eliminating it by separating its services between a variety of agencies as well as the Bank of England.

On the first of April this year the FSA will be removed and replaced by a new regulatory regime. The government suggested that this choice was based upon the authority’s failure to deal with the monetary crisis in recent years.

According to the government the governing body will have boosted powers over the financial sector, this is largely due to demands by the public for tighter restrictions to be placed on the task of the banks.

Whether these brand-new regulating bodies will have the preferred impact continues to be to be seen, it will certainly be interesting to see how these brand-new authorities will deal with claims against monetary services over the mis-selling of payment protection insurance and the recent interest-only loans.

These new governing authorities will be under pressure to enhance on previous results and take swifter and more serious action against the mis-selling of items by different major financial authorities.

For information and news related to the finance industry take a look at the following website, http://www.mis-sold-mortgages-uk.co.uk/our-mortgage-services/

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