The structure explained
There are three main business units within the FSA comprising of Operations Business Unit, Retail Markets and Wholesale & Institutional Markets.
Operations Business Unit
The Operations Business Unit provides a range of services to consumers, existing firms and firms seeking authorisation. It plays a major role in improving our operational effectiveness and making us easier to do business with.
This Business Unit:
- processing, validation and warehousing of data received from firms and delivery of such data to supervisors;
- decisions and policy development on some regulatory matters;
- information systems to support the strategies and operations across the FSA, with an increasing emphasis on knowledge management systems; and
- services to the FSA itself, including facilities management, payroll processing, accounts payable, procurement and certain HR services.
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Retail Markets Business Unit
The Retail Markets Business Unit takes the lead in pursuing our aim of helping retail consumers achieve a fair deal. It has overall responsibility for regulating firms or groups whose business is predominantly at the retail end of the market.
This Business Unit:
- regulates the major firms (including all high street banks, insurance companies and other financial institutions) whose business is mainly in the retail markets, based on close and continuous contact with these firms;
- regulates other retail banks, building societies, insurers, mortgage lenders, asset managers and retail financial services intermediaries with whom we have an ongoing relationship;
- Regulates approximately 18,000 smaller firms engaged in the mortgage advice, insurance broking and investment advice sectors, as well as other smaller retail financial firms; and
- has responsibility for the design of proportionate and appropriate policies specific to the retail sector and for taking forward key consumer-related initiatives, such as those on mortgage endowments, financial capability and financial promotions.
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Wholesale & Institutional Markets Business Unit
The Wholesale and Institutional Markets Business Unit has overall responsibility for the regulation of firms and markets whose business is predominantly in the wholesale or institutional sectors and which is therefore conducted among market professionals. It takes the lead in pursuing our aim of maintaining efficient, orderly and clean financial markets.
This Business Unit:
- supervises all regulated markets, the related infrastructure such as clearing and settlement, and operation of the Listing rules;
- regulates firms that primarily conduct wholesale business, including investment banks, certain deposit-takers, Lloyd's of London, London market insurers, reinsurers, corporate finance firms, venture capital firms and institutional asset managers; and
- is responsible for maintaining and developing prudential policies which apply to all regulated firms, and conduct of business standards for wholesale and institutional markets. These include implementation of key projects such as Basel 2, risk-based capital for insurers and softing/unbundling.
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