FSA

Most financial services firms operating in the UK must, by law, be authorised by the FSA before they can do business here. The Financial Services Authority (FSA) is an independent body set up by the government to regulate financial services in the UK and to protect the rights of retail customers. The FSA regulates but does not recommend firms or products.

Firms which are authorised by the FSA must follow their rules or risk discipline or prosecution, whether they are large firms or individuals. The FSA regulates financial advice for most types of mortgages, investments and general or protection insurance.

The FSA regulates the sale of investment products but there are a number of financial services or products which are currently not regulated by the FSA, for example, second charge mortgages and / or where less than 40% of the home on which the loan is secured, is or will be used by you or an immediate member of your family as a home. Currently many types of buy-to-let and reversion mortgages are not regulated by the FSA. The sale and administration of personal loans, most second-charge loans and credi cards are monitored or regulated by the Office of Fair Trading.