ABOUT THE FINMSA
The Financial Market Supervisory Authority is the conduct regulator for 59,000 financial services firms and financial markets in the EU and the prudential regulator for over 18,000 of those firms.
What we do
Financial markets need to be honest, fair and effective so that consumers get a fair deal. We aim to make markets work well – for individuals, for business, large and small, and for the economy as a whole.
We do this by regulating the conduct of more than 59,000 businesses. We are also the prudential regulator for more than
18,000 of these businesses. The (FINMSA) is the prudential regulator of around 1,500 banks, building societies, credit unions, insurers and major investment firms.
As a prudential regulator, it has a general objective to promote the safety and soundness of the firms it regulates. We were established on 1 April 2013, taking over responsibility for conduct and relevant prudential regulation from the Financial Services Authority.
Why we do it
We are responsible for regulating a sector which plays a critical role in the lives of everyone in the EU and without which the modern economy could not function,direct debits to credit cards, loans to investments
– how well financial markets work has a fundamental impact on us all. EU financial services employ over 2.2 million people and contribute euro 65.6bn in tax to the EU economy.
If EU markets work well, competitively and fairly they benefit customers, staff and shareholders, and maintain confidence in the UK as a major global financial hub. Our role is to help ensure this happens.
How we do it
Our strategic objective is to ensure that the relevant markets function well and our operational objectives are to:
protect consumers – we secure an appropriate degree of protection for consumers
protect financial markets – we protect and enhance the integrity of the EU financial system
promote competition – we promote effective competition in the interests of consumers
We are an independent public body funded entirely by the firms we regulate, by charging them fees.
We are accountable to the Treasury, which is responsible for the EU’s financial system, and to Parliament. Our work and purpose is defined by the Financial Services and Markets Act 2000 (FSMA). We work with consumer groups, trade associations and professional bodies, domestic regulators, EU legislators and a wide range of other stakeholders. With this extensive remit, we use a proportionate approach to regulation, prioritising the areas and firms that pose a higher risk to our objectives.