About us
The Financial Services Authority (FSA) is the UK regulator for the financial services industry. We are an independent non-governmental body, and were given our statutory powers by the Financial Services and Markets Act 2000.
Our aim is to fulfil our four statutory objectives:
- market confidence: maintaining confidence in the financial system;
- public awareness: promoting public understanding of the financial system;
- consumer protection: securing the appropriate degree of protection for consumers; and
- reduction of financial crime: reducing the extent to which it is possible for a business to be used for a purpose connected with financial crime.
We are accountable to the Treasury and through to Parliament, although we are operationally independent of the government and are funded entirely by the firms we regulate.
Supervision
Our supervision areas work with regulated firms to ensure they are well governed, financially sound and that they manage the risks inherent in their business models and markets. We do this through applying a risk- and outcomes-focused regulatory approach, intervening proactively and proportionately to deliver credible deterrence and redress.
Prudential risk
Our Prudential Insurance Risk Department covers insurance and pensions related risks and issues, including implementation and management of the Solvency II Internal Models Approval Process (IMAP).
The work of the department's specialists includes:
- leading and supporting insurance sector reviews;
- supporting insurance-related stress testing exercises;
- leading on the Internal Capital Adequacy Assessment Process (ICAAP) on pension risk capital;
- supporting on Individual Capital Adequacy Standards (ICAS) on pension risk capital;
- leading the IMAP under Solvency II;
- providing technical support on IMAP; and
- providing technical support on non-IMAP Solvency II issues, including work related to the Quantitative Impact Study (QIS) exercises.
Policy
Our Prudential Policy Division is responsible for developing the detail of the future regulation around Solvency II. It often works in conjunction with our European colleagues in the Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS). It is also responsible for drafting the FSA Handbook, as well as advising Supervision colleagues and UK firms on the rules and requirements.