The easiest way to describe who the FSA are and what they do is probably to quote from their website, so this is what they have to say about themselves:

"The Financial Services Authority (FSA) is an independent non-governmental body, given statutory powers by the Financial Services and Markets Act 2000. We are a company limited by guarantee and financed by the financial services industry. Her Majesty’s Treasury appoints our Board, consisting of a Chairman, a Chief Executive Officer, two Managing Directors, and 11 non-executive directors (including a lead non-executive member, the Deputy Chairman). This Board sets our overall policy, but day-to-day decisions and management of the staff are the responsibility of the Executive."

They effectively act as an independent body who have four main objectives:

• Maintaining confidence in the UK financial system
• Promoting public understanding of the UK financial system
• Securing the right degree of protection for consumers
• Helping to reduce financial crime