Financial Services Authority (FSA)

Who are the FSA?

The Financial Services Authority is probably the largest regulatory body in the United Kingdom. Following the Financial Services and Markets Act 2000, it took over the responsibility of regulating almost the whole of the financial services industry, from independent financial advisers through to Banks. The FSA is responsible for the investigation of a variety of criminal offences in addition to its regulatory role.

It has wide-ranging powers to investigate:

  • Mis-selling of financial services;
  • Insider share trading;
  • Regulation and disciplinary matters relating to approved persons or authorised firms;
  • Perimeter breaches, where an unauthorised person has carried out a regulated activity;
  • Market rigging;
  • Misleading or obstructing an FSA investigation.

Regulatory Issues

In addition to its investigative powers for criminal offences, it also regulates the financial services industry and brings disciplinary proceedings against authorised persons or firms.

Disciplinary Procedures

The first step in the disciplinary procedure is usually the issuing of a warning notice. There are various opportunities to make representations to the Regulatory Decisions Committee.

Interviews

The FSA can require individuals and firms to provide them with information and/or explanations concerning documentary material and can require documents to be provided to them. In many circumstances, the FSA try to proceed on a consensual basis with those whom they are investigating.

In some circumstances, the interviews that they conduct will be interviews under caution, governed by the Police and Criminal Evidence Act 1984. The significance of those interviews is that the replies can later be used in a criminal prosecution.

Any person or organisation being required to provide information or documentary material or to attend an interview with the FSA should seek immediate legal advice regarding the legality of the request and what action should be taken in response to the request.

Penalties

A distinction needs to be made between the FSA’s role as a regulator and its status as an investigator of criminal offences.
In relation to regulatory breaches, the FSA has the power to:

  • Impose fines;
  • Withdraw or vary permission or authorisation to firms and individuals;
  • Financial Penalties;
  • Issue warning, supervisory and decision notices.

The offences that the FSA prosecute through criminal courts carry varying penalties which can include substantial prison sentences for those convicted.

Appeals

Actions taken by the Regulatory Decisions Committee (RDC) of the FSA can be appealed to the Financial Services and Markets Tribunal.

Contact us

If you feel that you require advice and assistance following contact by the Financial Services Authority, then please contact us as soon as possible.
We are also able to help in circumstances where the Financial Services Authority arrives without warning at premises.