Information about The Financial Services Authority

Who is the Financial Services Authority? (FSA)

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Is it better to have a Guaranteed or a Reviewable premium?: In the medium to longer term we believe that a Reviewable policy will cost you more than a Guaranteed policy. On the other hand Reviewable policies do have the advantage of a lower premium at the outset and this appeals to many people, especially if budgets are tight.
Could you end up paying more for insurance than someone else the same age?: Yes you might, because your age is only one of many aspects the insurance company takes into account when determining your premium.
Will your medical history affect your premium?: Yes, your medical history is a very important factor.
If your insurer asks for a higher premium because you are Rated, is it worth applying to another insurance company?: We do not think so. Why? Read on.
Can A Claim Be Made If The Policy Is Lost?: Yes. Simply contact the Insurance Company and they’ll send a “Lost Policy Claim Form”.

The FSA is a non-government body. It is independent and has been given legal powers under the provisions of the Financial Services and Market Act 2000.

The FSA is a company limited by guarantee with HM Government appointing their Board of Directors. They are financed by the financial industry.

The FSA’s Board sets their policy, but their Executive runs day-to-day business.

What does the FSA do?

The FSA has four objectives:

To uphold public confidence in the UK’s financial structure – They achieve this by, for example, supervising financial exchanges with other market infrastructure providers; carrying out market inspections; and checking financial transactions.

To improve the public’s knowledge of the structure of the UK’s financial industry – The FSA helps people get the understanding, capability and skills needed to become well-informed consumers, so that they can more effectively manage their own financial affairs.

To safeguard consumers – the FSA checks all applicants who wish to sell financial services and be members of the FSA. Their aim is to admit only those firms and individuals who meet the required strict criteria (including honesty, capability and financial standing). When they are authorised, the FSA expect firms and individuals to maintain the standards set down by the FSA. The FSA then checks how far the businesses and individuals meet their exacting standards. If serious problems are identified the FSA examines the situation and, if correct, disciplines or prosecutes those responsible. The FSA can also use their powers to return funds to clients.

To help reduce financial crime – the FSA concentrates on three main types: money laundering; fraud and dishonesty; and criminal financial wrongdoing (such as insider dealing).

Whilst working towards these aims, the FSA takes account of the following:

The need to use its resources in a cost effective and proficient way;
The responsibility of the management in the organisations it regulates;
The need to balance the restraint of financial firms with the benefits for clients and industry of the FSA’s regulation
The need to encourage development and advancement;
The international environment of financial markets and services and the United Kingdom’s competitive position; and finally
The value of competition between financial organisations.

Regulating insurance intermediaries

The Financial Services Authority now regulates the sale of mortgages, insurance products such as house and car insurance, and life insurance. This follows the Insurance Mediation Directive from the EEC Parliament. This Directive necessitates formal regulation of all general insurance business.

How to visit the FSA website

The FSA’s web site is at http://www.fsa.gov.uk. You may find the following page a good starting point: http://www.fsa.gov.uk/consumer