FSMA Financial Services Act
United Kingdom
2000
Consumer Protection
Overview
The Financial Services and Markets Act 2000 (FSMA) is the cornerstone of financial regulation in the United Kingdom. It establishes the legal framework for authorizing, supervising, and enforcing standards for banks, insurers, investment firms, fintechs, and other financial service providers. FSMA empowers the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) with regulatory oversight.FSMA has evolved through various amendments, including major updates under the Financial Services Act 2021 and post-Brexit regulatory reforms. It governs conduct of business, prudential requirements, market integrity, and consumer protection.
Key Obligations
- Obtain appropriate authorization from the FCA or PRA before carrying out regulated activities
- Comply with conduct of business rules to treat customers fairly
- Maintain adequate financial resources and risk controls
- Ensure transparency in marketing, promotions, and disclosures
- Report breaches, suspicious activity, and relevant financial information to regulators
- Uphold standards of integrity, competence, and accountability
FAQ
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