Financial Conduct Authority (FCA)
IntermediateThe Financial Conduct Authority (FCA) is the UK regulator responsible for the conduct of financial services firms and the integrity of financial markets, and for the prudential regulation of firms not supervised by the Prudential Regulation Authority.
The FCA was created in 2013, when the Financial Services Authority was split into two bodies following the 2008 financial crisis. The FCA took over conduct regulation, while the Prudential Regulation Authority, part of the Bank of England, took over prudential supervision of banks, insurers and major investment firms.
The FCA’s objectives are to protect consumers, protect and enhance the integrity of the UK financial system and promote effective competition in consumers’ interests. It regulates tens of thousands of firms, including banks, insurers, investment firms, financial advisers, consumer credit firms and payment companies.
For example, the FCA introduced the Consumer Duty in 2023, requiring firms to deliver good outcomes for retail customers, and it has taken action on issues such as mis-sold payment protection insurance and motor finance commissions.
The FCA authorises firms, sets rules, supervises firms’ conduct and takes enforcement action, including fines and bans. It is funded by fees paid by the firms it regulates and is accountable to Parliament through the Treasury.
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