Financial Conduct Authority (UK) - FCA

AAA

DEFINITION of 'Financial Conduct Authority (UK) - FCA'

The regulator of the financial services industry in the United Kingdom. The Financial Conduct Authority (FCA) has the strategic goal of ensuring that the relevant markets in the U.K. function well. It has three operational objectives in support of this strategic goal – to protect consumers, to protect and enhance the integrity of the U.K. financial system and to promote healthy competition between financial services providers in the interests of consumers. It was established by the Financial Services Act that came into force on April 1, 2013.

INVESTOPEDIA EXPLAINS 'Financial Conduct Authority (UK) - FCA'

The FCA’s statutory objectives were set up under the Financial Services and Markets Act 2000, amended by the Financial Services Act 2012. The latter Act made major changes to the way financial services firms like banks are regulated in the U.K. It was introduced to ensure the financial sector manages and contains risks more effectively, after the financial crisis of 2008-09.  

The FCA has sweeping powers to enforce its mandate, including rule-making, investigative and enforcement powers. The FCA also has the power to raise fees, which is necessary since it is an independent body and does not receive any government funding. It therefore charges fees to authorized firms that carry out activities regulated by the FCA, and other bodies like recognized investment exchanges.

Periodic fees charged to firms provide most of the funding required by the FCA to carry out its statutory duties. These fees are based on factors such as the type of regulated activities undertaken by a firm and the scale of those activities, as well as the regulatory costs incurred by the FCA.

RELATED TERMS
  1. Working Tax Credit (WTC)

    A tax credit offered to low-income individuals working in the ...
  2. Bulldog Market

    A nickname for the foreign bond market of the United Kingdom. ...
  3. Ltd. (Limited)

    An abbreviation of "limited," Ltd. is a suffix that ...
  4. Corporate Financing Committee

    A regulatory group that reviews documentation that is submitted ...
  5. Stroud Pound

    A local, private currency launched in the British town of Stroud, ...
  6. Totnes Pound

    An alternative currency of Totnes, in Devon, United Kingdom. ...
Related Articles
  1. How To Become A Corporate Board Member ...
    Personal Finance

    How To Become A Corporate Board Member ...

  2. Are Equity-Indexed Annuities Right For ...
    Savings

    Are Equity-Indexed Annuities Right For ...

  3. Picking Your First Broker
    Investing Basics

    Picking Your First Broker

  4. Want to Day Trade? Try Binary Options ...
    Options & Futures

    Want to Day Trade? Try Binary Options ...

comments powered by Disqus
Hot Definitions
  1. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  2. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  3. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  4. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
  5. Over The Counter

    A security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase "over-the-counter" ...
  6. Earnings Before Interest After Taxes - EBIAT

    A financial measure that is an indicator of a company's operating performance. EBIAT, which is equivalent to after-tax EBIT ...
Trading Center