Under FSMA 2000, the Financial Services Authority has various Essay

Under FSMA 2000, the Financial Services Authority has various statutory objectives. Critically evaluate the progress they have made under each of these objectives - Essay Example This ensures that there is smooth functioning without any friction. The second point of consideration is its power to conduct regular supervision of the financial services industry. This means writing policies for wholesale, retail, banking, and other financial services including insurance, and ensuring their proper adherence to the policies. As a part of this, the Authority has developed a code of market conduct which ensures that the market abuse practices are properly dealt with. Also, it has its own investigation and enforcement policies and department that identify the misconducts, and bring the culprits to law. The benefit of FSMA Act is that Section 165 allowed FSA to collect information and documents from firms as necessary. This power can be utilised in two ways. Either it can be used to require the provision of particular information, or it can be used to require the production of a particular document. According to Section 167, the Authority has the power to appoint investigators to conduct general investigations into firms (Alexander, 2002). Another vital point that deserves attention is the possibility of conducting investigations in support of overseas regulators. When there is violation of the policies, the Authority has the power to issue a public statement of misconduct or penalty as it finds appropriate, and the quantum of penalty is based on the risk of loss caused to consumers and other market users. Yet another important measure that enhances market confidence is the Financial Services Compensation Scheme. The next point is ensuring public awareness. Admittedly, Financial Service Authority has such a policy that is open to all consumers. To illustrate, there is the FSA library, FSA handbook, and FSA register. The FSA handbook gives one an idea about all the rules, regulations, and policies of FSA. In addition, there are handbooks called tailored handbooks available on various