FSA`s role in regulating capital markets – when and how its decisions can be challenged 🎯

What is the FSA and what is its role?

The Financial Supervisory Authority (”FSA”) is the institution that regulates and supervises:

• The capital market (shares, bonds, investment funds);
• The insurance market;
• The private pension system.

The FSA’s role is to protect investors and ensure financial stability.

In this post, you will learn:

• When the FSA can issue a decision that directly affects you;
• How you can challenge it.

FSA’s powers – what types of decisions does it issue?

The FSA has the authority to issue:

• Authorizations or approvals for financial services firms;
• Sanctions: fines, suspensions, revocation of licenses;
• Regulatory decisions: rules, trading regulations, prospectuses, etc.

Common examples:

• The FSA revokes a fund manager’s authorization;
• The FSA fines a broker for market manipulation;
• The FSA temporarily bans the listing of certain financial instruments.

How can you challenge FSA decisions?

FSA decisions are not untouchable. You can contest them if:

• they directly affect your rights or interests;
• they are illegal, disproportionate, or abusive.

You can request the annulment of the FSA’s administrative decision and, where applicable, seek damages.

Relevant examples:

1. The FSA fined an issuer for publishing incomplete information → The court reduced the fine.
2. The FSA revoked a fund’s authorization → The court suspended the decision to allow recovery.
3. The FSA refused to register a document in the financial instruments registry → The decision was overturned as insufficiently reasoned.

The FSA is a powerful authority, but it is not infallible.
If its decision severely affects your activity or rights, you have the right to challenge it in court.

Have you received an FSA decision and don’t know what to do? Contact us for a comprehensive legal review and representation in court.