Guide to Analysing Companies

Financial Services Authority
The UK’s omnipotent regulator of financial services. The Finan-
cial Services Authority (fsa) was set up under the Financial Ser-
vices and Markets Act 2000. Unlike most regulators, the fsa
covers both retail and wholesale business; that is, services for
professionals as well as consumers. So it is just as likely to pro-
nounce on the regulation of, say, securities derivatives as
F
138
FINANCIAL CENTRE
02 Essential Finance 10/11/06 2:22 PM Page 138

---

credit unions run for and by individuals. A company
limited by guarantee with a board of directors appointed by
the government, the fsa pays for itself through a levy on the in-
dustry that it regulates. Because of its size and scope, it is rarely
out of the limelight.
Financial services institution
Any firm in the financial services industry, such as a commercial
bank, investment bank, an investment company, or a
fund manager. Often abbreviated to fsi. 
Financial Times
A daily newspaper printed on pink paper. It is the bible of the
European financial community in much the same way that the
WALL STREET JOURNAL
is for the United States. The 
Financial Times
is printed in 18 cities around the world and has several different
editions, for example, in the UK, the United States and Europe.
Financial year
The 12-month period covered by a company’s accounts. On oc-
casions, a financial year can be a period of more or less than 12
months. For example, when a company wants to change the
ending of its financial year from (say) inconvenient May to
more convenient December, it will have to have a financial year
of either seven months or 19 months (7 
 12). 
Fixed-income security
A security that pays a fixed rate of interest. This in-
cludes government, municipal and corporate bonds which
pay a fixed rate of interest until they mature. It may also refer to
preferred or preference shares which pay a fixed divi-