British people: What is the FSA?

[LinusKS]

Neteller is supposedly regulated through the FSA (Financial Services Authority.)

Their Wiki entry makes them sound like a genuine regulatory body, but their webpages are less than helpful. They do not, for example, take emails from customers, and they don't seem to be interested in taking complaints.

Any chance the FSA will do anything about Neteller, or is it fake?

[LinusKS]

This is their "Referral Criteria."

Neteller meets almost all of them.

<ul type="square"># Has there been actual or potential consumer loss/detriment?

# Is there evidence of financial crime or risk of financial crime?

# Are there actions or potential breaches that could undermine public confidence in the orderliness of financial markets?

# Are there issues that indicate a widespread problem or weakness at the firm/issuer?

# Is there evidence that the firm/issuer/individual has profited from the action or potential breaches?

# Has the firm/issuer/individual failed to bring the actions or potential breaches to the attention of the FSA?

# Is the issue to be referred relevant to an FSA strategic priority?

# If the issue does not fall within an FSA strategic priority, does the conduct in question make the conduct particularly egregious and presenting a serious risk to one of the FSA's Objectives?

# What was the reaction of the firm/issuer/individual to the breach?

# Overall, is the use of the enforcement tool likely to further the FSA's aims and Objectives?[/list]

[davmcg]

In answer to your original query, the FSA is a statutory organisation i.e. it is part of government. Its powers can go as far as to actually prosecute firms and individuals.

Your second post refers to it's "enforcement" criteria. Enforcement can be a private reprimand, a fine or removal of authorisation to carry out business.

I've posted before that I'm not entirely certain that US customers have a business relationship with the authorised firm, Neteller UK - they may have a contract with Neteller PLC based on the Isle of Man. If they do (judging by the posts on this forum) Neteller is blatantly disregarding FSA rules on complaint handling and rules relating to keeping customers informed.

[awjpoker]

If i was you i would phone the FSA and explain the situation directly. They should be able to tell you where you stand and how to escalate a complaint.

[Richas]

The FSA is an independent body that took over the Bank of England regulatory role with regard to Financial services in the UK. It is unclear if the FSA will deal with any non EU customer issues but even if they do in general you have to exhaust the company complaint process then appeal to an independent ombudsman.

In short the FSA regulation shows that they are a legit company or they would close them down and/or issue a warning to customners to avoid them if base abroad.

The difficulty is that the beef is with the DOJ not the FSA or even Neteller. Neteller have the money in trust, their reserves exceeed the $55m the DOJ seized but they are stuck right now because of the US legal system. Meanwhile the FSA will note that EU customers can still get their cash and that is the bit they regulate. I'm sure somebody is losing sleep in their Canary Wharf offices over this but the problem is the DOJ.