Glossary · UK
What is Financial Conduct Authority (FCA)?
The UK regulator responsible for conduct standards in financial services, overseeing banks, insurers, mortgage lenders, investment firms and consumer credit providers to protect consumers and markets.
Full Definition
The Financial Conduct Authority is the conduct regulator for almost all UK financial services firms, from high street banks and mortgage lenders to investment platforms, insurance brokers, payday lenders and financial advisers. It was created in April 2013, taking over most of the consumer-facing regulatory role of the former Financial Services Authority (FSA), while prudential (financial soundness) supervision of banks, building societies and larger insurers passed to the Bank of England's Prudential Regulation Authority. The FCA's core objectives are to protect consumers, protect and enhance the integrity of the UK financial system, and promote effective competition; in practice this covers setting rules on how firms must treat customers (including the Consumer Duty, which came fully into force in 2023), authorising and supervising firms and individuals, banning misleading financial promotions, taking enforcement action and fines against firms that breach the rules, and operating the Financial Services Register that consumers can check to confirm a firm or adviser is genuinely authorised. Firms authorised by the FCA give consumers access to the Financial Ombudsman Service for complaints and the Financial Services Compensation Scheme for compensation if the firm fails, which is why checking FCA authorisation is one of the most basic anti-scam checks before dealing with any financial firm.