financial services law

financial services law

the law applying to financial services such as investments and pensions. This area was thoroughly overhauled by the Financial Services Act 1986. The regime put in place by that Act operated through the Securities and Investments Board (SIB ), which authorized bodies to act as regulators. The SIB was replaced by the Financial Services Authority (FSA), created by the Financial Services and Markets Act 2000. This authority took over the regulatory functions previously divided between a wide range of other organizations. For example, it became responsible for the regulation of the Lloyds Insurance market, building societies and banks as well as companies in the investment industry. It has four objectives under the Financial Services and Markets Act 2000: maintaining market confidence; promoting public understanding of the financial system; the protection of consumers; and fighting financial crime. The range of this newly organized law is wider than often thought; for example, it has been held that authorization is required to market and sell a computer package that gave advice on trading equity options.