This essay will discuss: why financial services need regulated in the United Kingdom, Prudential Regulation Authority (PRA), Financial Conduct Authority (FCA), Financial Services Authority (FSA) and a short comparison between the old regulator and the new one. The main areas this essay will comment on will be why regulation is needed and the current regulators the PRA and FCA. It will also discuss the extent to which regulators protect consumers of the United Kingdom financial system. Regulation is defined as “The imposition by a government of controls over the decisions of individuals or firms. It often refers to the control of industries in which there is monopoly or oligopoly.” (Oxford, 2008)
The need for regulation in Financial Services …show more content…
This can also be known as a fund of last resort for all customers of financially regulated firms, the FSCS pay compensation to customers if the firm is unlikely or unable to pay claims against it. FSCS is independent of the government and the finance industry, which was set up under the Financial Services and Markets Act 2000 although they did not come into powers until 01/12/01. The FSCS covers business conducted and authorised by the PRA and FCA to protect the rights of consumers. (FSCS, …show more content…
(Ambler & Butler, 2012)
The Financial Ombudsman Service is one of the main sources of protection other than the FCA and the PRA, which deals with complaints, which have not been resolved to the consumer’s standards by the organisation. The organisation, which the consumer has made the complaint against. There are a few procedures that consumers have to go through before the Ombudsman can take on the complaint there is a six-month time limit from the date that has to be filed within.
The Financial Conduct Authority has a an emphasis on supervision of Financial Services firms in which they have given four new supervision categories stated in a speech from Clive Adamson former Director of Supervision at the FSA, he states that these categories are sorted to their impact on consumers and the market while recognising that there is not a one-size-fits-all approach. (Adamson, 2013) The first category is C1, which is for the largest firms with large client assets whereas C4 firms are smaller firms such as Independent Financial
The need for regulation in Financial Services …show more content…
This can also be known as a fund of last resort for all customers of financially regulated firms, the FSCS pay compensation to customers if the firm is unlikely or unable to pay claims against it. FSCS is independent of the government and the finance industry, which was set up under the Financial Services and Markets Act 2000 although they did not come into powers until 01/12/01. The FSCS covers business conducted and authorised by the PRA and FCA to protect the rights of consumers. (FSCS, …show more content…
(Ambler & Butler, 2012)
The Financial Ombudsman Service is one of the main sources of protection other than the FCA and the PRA, which deals with complaints, which have not been resolved to the consumer’s standards by the organisation. The organisation, which the consumer has made the complaint against. There are a few procedures that consumers have to go through before the Ombudsman can take on the complaint there is a six-month time limit from the date that has to be filed within.
The Financial Conduct Authority has a an emphasis on supervision of Financial Services firms in which they have given four new supervision categories stated in a speech from Clive Adamson former Director of Supervision at the FSA, he states that these categories are sorted to their impact on consumers and the market while recognising that there is not a one-size-fits-all approach. (Adamson, 2013) The first category is C1, which is for the largest firms with large client assets whereas C4 firms are smaller firms such as Independent Financial