FCA

The FCA regulates nearly 46,000 businesses across the UK, ensuring that markets operate fairly and equitably for individuals, businesses, and the broader economy. It protects financial markets and promotes healthy competition among financial services providers in the interests of consumers.

History of the FCA’s establishment

The FCA was established on 1 April 2013, succeeding the Financial Services Authority (FSA), but with a broader mandate.

The FCA’s main objectives are outlined in the Financial Services and Markets Act 2000 and the Financial Services Act 2012. These acts, introduced in response to the 2008-2009 financial crisis, significantly reshaped the regulation of financial firms, enhancing governance and reducing risk.

The FCA’s jurisdiction covers the entire UK, with its head office in London and additional offices in Leeds, Edinburgh, Belfast, and Cardiff. The FCA’s leadership is predominantly appointed by the Treasury.

Powers of the FCA

The FCA possesses extensive powers, including law-making, enforcement, and investigation. It supervises companies that may pose a risk to the proper functioning of the market, prevents financial crime, oversees the issuance of securities, sets minimum standards for financial products, and has the authority to freeze the assets of companies, among other responsibilities.

The FCA is also responsible for licensing organisations engaged in financial activities within the UK. Mandatory licensing applies to:

• banks, credit institutions, and mortgage providers;
• investment and brokerage firms;
• participants in the Forex market (read more about this market in our article);
• various funds, including pension funds;
• organisations offering financial advice;
• companies issuing electronic money, and more.