On June 21, the Financial Services Authority (FSA) published its Annual Report for the year 2006/07. The report details FSA’s work in the previous year under three headings: (i) promoting efficient, orderly and fair financial markets; (ii) helping retail consumers achieve a fair deal; and (iii) improving business capability and effectiveness.
The FSA continued to review existing regulations to see where unnecessary regulations may be eliminated or replaced with principles and the FSA’s Chairman, Callum MacCarthy, acknowledged that more problems lie within the retail market than in wholesale and cited as reasons complex products, information asymmetries and low levels of consumer awareness. For the year 2006/07, the FSA had set 74 targets, of which 61 were delivered on time and eight were delayed but still delivered in the financial year. Five are still outstanding.
The FSA's enforcement division closed 219 investigations. The Regulatory Decisions Committee considered 17 new cases as opposed to 46 last year and the FSA levied £14.66 million in financial penalties during the year compared to £17.43 million for the previous year.