The Financial Services and Markets Act 2000 provides the framework within which a single regulator for the financial services industry, the Financial Services Authority (the Authority), will operate. It provides the Authority with a range of statutory powers and creates the Financial Services and Markets Tribunal (“the Tribunal”). Finally The Act establishes a framework for ombudsman (persons appointed to investigate complaints about organisations) and compensation schemes with the aim of providing further protection for consumers.
The Act main provisions within refer to:
• the constitution and accountability of the Authority;
• the definition of the scope of regulated activities;
• the control of financial promotion;
• powers of the Authority to authorise, regulate, investigate and discipline authorised persons;
• the recognition of investment exchanges and clearing houses;
• arrangements for the approval of controllers and the performance of regulated activities;
• the oversight of financial services provided by members of the professions;
• regulation and marketing of collective investment schemes;
• certain criminal offences;
• powers to impose penalties for market abuse; and
• the transfer to the Authority of registration functions in respect of building societies, friendly societies, industrial and provident societies and certain other mutual societies.
