According to research carried out by the Financial Services Authority (FSA), it is perceived as being an effective regulator. The recently published report determined customer awareness of the Financial Services Authority in particular and financial regulation in general. A total of 68% of consumers were confident that the FSA was carrying out its duties properly, 21% had no view, and the remainder were not confident in the abilities of the regulator. While the report suggests that the FSA is doing a good job, only a third of the respondents were even aware that the body exists! This is split evenly among people who could recall the FSA unprompted, and those who had to be reminded! When polled about their knowledge of FSA activities, 42% thought that they dealt mainly with selling practices and preventing mis-selling. A further 20% said that the FSA ensured only appropriate people and firms worked in financial services. Around 1 in 8 of those who were aware of the FSA, had little knowledge of its protection, enforcement activities and conduct of business suitability rules.
Our view
The public is becoming increasingly aware of the FSA, this comes from better and more widespread regulation as more financial advisers, insurers, mortgage companies and bankers make people aware of their rights before making a financial transaction. The FSA has its faults, some of its staff really do have not got a clue what they are doing, but it does not have an easy job overall so you have to expect some rough, i.e. training shortfall needs, with the smooth. We believe it is still the best regulator in the World.