Financial Conduct Authority

The Financial Conduct Authority (FCA) is a single regulator for financial services and markets in the UK.It is an independent body, established on 1 April 2013, under the Financial Services Act 2012, and replaces the previous body for regulating financial services in the UK, the Financial Services Authority (FSA).

Unlike many bodies, the FCA is funded by fees from the firms it regulates rather than government funding.The FCA operates independently but is accountable to the UK Treasury and Parliament, both of whom can oversee its objectives and performance.

What does the FCA do and why does it matter?

The FCA regulates approximately 42,000 financial providers and supervises the prudential health of roughly 41,000 firms, of which approximately 17,000 have detailed rules in the FCA’s official handbook.

At its simplest form, the FCA regulates whether or not the UK’s financial markets operate effectively, efficiently, and fairly.

• Increase transparency so consumers understand what they are signing up for.

• Protect people from immoral or dishonest practices

• Encourage innovation to help businesses grow and compete

• Maintain fair competition so that one company does not dominate all of the market.

Financial services underpin almost everybody’s life, for savings accounts, pensions, mortgages, insurance, loans, etc.

FCA Objectives

The FCA’s primary objective is that financial markets function well for everyone.

1.To protect consumers by ensuring they are treated fairly and can access the products and services they need.

2.To protect and enhance the integrity of the UK financial system and the public’s trust in it.

3.To promote competition in the interests of consumers, facilitating innovation and better consumer outcomes.

Since 2023, the FCA has also added operational objective aimed at improving the UK’s global competitiveness and economy in a sustainable way and in alignment with international regulatory standards.

FCA: How it Works – Where it Works

The FCA is headquartered in London with offices in Leeds, Edinburgh, Belfast, and Cardiff.