U.K. Financial Services Authority
|ROYAL ASSENT: On December 19, 2012, the Financial Services Act was approved by Parliament. On April 1, 2013, the FSA was abolished. Regulatory authority will be transferred to the Bank of England, with regulatory new architecture consisting of:|
|Financial Services Authority|
The Financial Services Authority (FSA) was an independent non-governmental body that regulates the financial services industry in the UK. Established by Gordon Brown in 1997 when the Labour party came into power, the FSA was granted statutory powers by the Financial Services and Markets Act of 2000. After the FSA "failed to sound the alarm as the financial system went wrong" in 2008-2010, the U.K. made plans for the transfer of regulatory oversight from the FSA to the Bank of England. 
On June 16, 2010, the U.K. government unveiled a reorganization of the country's bank-regulatory system that would include splitting the FSA into three new agencies, including a bank-regulating subsidiary inside the Bank of England. The Bank would be given more power in supervising the financial sector and preventing systemic risks. That proposal requires approval by Parliament and would be implemented by the end of 2012.
Under the new regulatory structure in the UK, (outlined in the report: A New Approach to Financial Regulation: The Blueprint For Reform the Bank of England will serve as the overarching regulatory agency for financial markets. Three new regulatory offices will be created under the Bank of England via the following moves:
- establishing a macro-prudential regulator, the Financial Policy Committee (FPC) within the Bank of England to monitor and respond to systemic risks;
- transferring responsibility for prudential regulation to a focused new regulator, the Prudential Regulation Authority (PRA), established as a subsidiary of the Bank of England; and
- creating a focused new conduct of business regulator, the Financial Conduct Authority (FCA), to ensure that business across financial services and markets is conducted in a way that advances the interests of all users and participants.
- Who are we?. FSA. Retrieved on March 30, 2011.
- U.K. Replaces ’Failed’ FSA With Prudential Regulatory Authority. Bloomberg. Retrieved on April 2, 2013.
- U.K. Shakes Up Bank Regulation. The Wall Street Journal. Retrieved on March 30, 2011.
- [http://www.hm-treasury.gov.uk/d/consult_finreg__new_approach_blueprint.pdf A new approach to financial regulation: The Blueprint For Reform]. Bank of England. Retrieved on June 17, 2011.