FSMA Financial Services Act
United Kingdom
2000
Consumer Protection
Overview
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
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Related Regulations
FAQ
Who does FSMA apply to?
FSMA applies to financial institutions, insurance providers, investment firms, fintech companies, and any entity conducting regulated financial activities in the UK.
What is the role of the FCA and PRA under FSMA?
The FCA oversees conduct and consumer protection, while the PRA focuses on prudential regulation for systemically important firms.
Do firms need authorization under FSMA?
Yes. Firms must be authorized by the FCA or PRA to legally carry out regulated activities under the Act.
How does FSMA interact with newer regulations like the Consumer Duty?
FSMA provides the foundational authority, while regulations like the Consumer Duty are implemented under its framework to further strengthen customer outcomes.