The Financial Services and Markets Act 2000 (FSMA) is a key part of the UK's legislative framework for financial services regulation. FSMA and related secondary legislation define the 'regulatory perimeter', setting out the activities and entities that fall within the scope of UK financial services regulation.
FSMA created the Financial Services Authority (FSA) as a regulator for insurance, investment business and banking. From 1 April 2013, the FSA became the FCA regulating firm’s conduct and the Prudential Regulation Authority (PRA) with responsibility to ensure banks maintain financial stability. FSMA also created the Financial Ombudsman Service to resolve disputes as a free alternative to the courts.