Being FSA regulated means that you and/or your firm are required to adhere to the standards as established by the FSA. It requires that submit certain information on a regular basis so that the FSA can adequately monitor your business activities.
This monitoring, or supervision, takes place with FSA authorized firms to the extent to which they pose any possible risks to FSA objectives. These objectives are to:
- consistently promote and support market confidence
- assist the public in their understanding of the financial system
- protect consumers
- prevent and help eliminate financial crime
Possible risks are assessed through the determination of the potential impact on both consumers and the market as well as the probability of the risk’s occurrence. There are different approaches used to conduct the necessary supervision according to the specific sizes and types of firms, whether a singular firm or multiple firms are being supervised, as well as the level and type of risk involved.
All firms are supervised through baseline monitoring activities such as the analyzing of any financial and other returns and verification of correct compliance with notifications requirements. When FSA regulated, any failure to meet with necessary requirements and/or risk indicators may be investigated by the supervisory team. To potential clients, FSA compliance can influence which financial advisor they engage.
