Jess Cooper of Grovelands gives a brief history of the FSA – from it’s formation in 1997, to the upcoming divide in 2013.
Recently we were treated to some pearls of wisdom from our all-knowing CEO, Mark Davies, about the history of the Financial Services Authority (FSA) and its current situation. Here is what we learnt about the FSA’s history…
The FSA was born of the Securities and Investments Board (SIB) in October 1997, originally responsible for the delegation of regulatory powers under the Financial Services Act 1986. This merging of regulatory responsibilities was necessitated by the economic difficulties of the nineties and their powers were consolidated into one unit.
Over the years the FSA gradually gained control of many areas of financial services, including (but not limited to) the Building Societies Commission, the Investment Management Regulatory Organisation, Personal Investment Authority, general insurance and mortgage regulation as well as gaining responsibility to prevent market abuse.
In June 2010 the split of the FSA was announced as a means of restructuring the UK’s financial regulatory framework. The aim was to ‘plug supervisory holes’ left by the economic crash in 2007 and take a new hard-line approach.
The once unitary regulator will split into two factions: the PRA (Prudential Regulatory Authority) and the FCA (Financial Conduct Authority).
Next week we’ll be looking in more detail at the FCA and at what impact this Twin Peaks regulation will have on the financial services industry.