The Financial Services and Markets Act 2000

The Financial Services and Markets Act 2000 (FSMA) is a UK law that regulates financial markets and services to ensure they are fair, transparent, and trustworthy. It establishes rules for businesses like banks, investment firms, and insurance companies, and creates the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) to oversee these sectors. The law aims to protect consumers, maintain confidence in the financial system, and prevent misconduct by setting standards and providing enforcement mechanisms. Overall, it provides a legal framework to promote stability and integrity within the UK’s financial industry.