“We regulate the conduct of nearly 45,000 businesses in the UK to ensure that financial markets work well.”
—-About the FCA, FCA.org

What is the Financial Conduct Authority (FCA)?

The Financial Conduct Authority (FCA) is the regulatory authority in the United Kingdom that oversees and regulates financial services firms and markets. It was established in 2013 and operates independently of the UK government.

What does the FCA do?

The FCA’s primary objective is to ensure that the financial markets operate in a fair, transparent, and efficient manner. It aims to protect consumers, promote competition, and enhance the integrity of the UK’s financial system. The FCA regulates a wide range of financial services firms, including banks, insurance companies, investment firms, and consumer credit firms.

What is FCA regulated?

Firms operating in certain financial services sectors, such as banking, insurance, investment management, and consumer credit, need to be authorized and supervised by the FCA to conduct their business legally.

To become FCA regulated, firms must go through an application process, which involves demonstrating their fitness and propriety, meeting capital adequacy requirements, implementing appropriate risk management systems, and complying with the FCA’s code of conduct. Once authorized, regulated firms are subject to ongoing supervision, reporting, and periodic assessments by the FCA to ensure continued compliance with regulatory standards.

Why are UK investors better off with a FCA-regulated broker?

If you are looking for the best UK stockbrokers, it is wise to check the FCA register first. When a broker is FCA regulated, you can be confident that their treatment of clients conforms to the FCA’s stringent criteria.

• FCA-regulated stockbrokers must meet capital adequacy requirements and maintain appropriate levels of financial resources to protect client assets. In the event of a broker’s insolvency, clients may be eligible for compensation under the Financial Services Compensation Scheme (FSCS).
• FCA regulation ensures that stockbrokers comply with legal and regulatory obligations specific to the financial services industry. This includes anti-money laundering (AML) regulations, data protection requirements, and measures to combat financial crime.

In a word, FCA’s regulatory framework helps maintain confidence in the financial markets and protect the interests of investors.