Financial Conduct Authority (UK) - FCA


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.

BREAKING DOWN '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.

  1. Security

    A financial instrument that represents an ownership position ...
  2. Series 6

    A securities license entitling the holder to register as a limited ...
  3. Enterprise Investment Scheme (EIS)

    A UK program that helps smaller, riskier companies to raise capital ...
  4. Working Tax Credit (WTC)

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

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

    An abbreviation of "limited," Ltd. is a suffix that ...
Related Articles
  1. Markets

    What Investors Can Learn From Insider Trading

    Some insider trading is actually legal - and can be extremely telling for investors.
  2. Investing Basics

    The Insiders Who Fix Rates for Gold, Currencies And Libor

    The system by which benchmark rates are fixed for interest rates, currencies and gold is archaic - and, many would argue, deeply flawed.
  3. Forex News

    How The Forex "Fix" May Be Rigged

    When it comes to forex, some types of "fixes" are legal. But some really aren't.
  4. Economics

    Defining Illegal Insider Trading

    The better you understand why insider trading can be criminal, the better you'll understand how the market works.
  5. Investing

    U.S. Government Cracks Down On Insider Trading

    The FBI is taking an interest in some shady dealings in the upper echelon.
  6. Forex Education

    Currency Exchange: Floating Rate Vs. Fixed Rate

    Baffled by exchange rates? Wonder why some currencies fluctuate while others are pegged? This article has the answers.
  7. Markets

    The Truth About Insider Trading

    Allowing insider trading to go unchecked could hurt confidence in the system enough to hinder the economy in general.
  8. Mutual Funds & ETFs

    Should Insider Trading Be Legal?

    Insider trading has become a hot-button issue. Here are some of the pros and cons to making it legal.
  9. Investing Basics

    How To Handle A Serious Dispute With Your Broker

    Find out what to do if you have a dispute with your broker.
  10. Investing News

    Will the UK Leave the EU?

    Britain is edging towards leaving the EU according to polls that show the UK's future membership of the EU is uncertain.
  1. How does a pension income drawdown work?

    While there are similar drawdown plans in the United States, a pension income drawdown plan most commonly refers to a specific ... Read Full Answer >>
  2. What is a drawdown arrangement?

    A drawdown arrangement is most frequently associated with pension funds and how retirement income is received. The principle ... Read Full Answer >>
  3. Are variable annuities safe?

    As of October 2015, many life insurance companies, and those companies that sell variable annuities, have experienced economic ... Read Full Answer >>
  4. How are variable annuities regulated?

    The sale of a variable annuity is regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory ... Read Full Answer >>
  5. I completed the Series 6, do I have to complete the entire Series 7?

    After having written the Series 6 examination, there would be significant overlap with the Series 7 in areas such as mutual ... Read Full Answer >>
  6. How should a change in accounting principle be recorded and reported?

    A change in accounting principle is the term used when a business selects between different generally accepted accounting ... Read Full Answer >>

You May Also Like

Hot Definitions
  1. Cyber Monday

    An expression used in online retailing to describe the Monday following U.S. Thanksgiving weekend. Cyber Monday is generally ...
  2. Bar Chart

    A style of chart used by some technical analysts, on which, as illustrated below, the top of the vertical line indicates ...
  3. Take A Bath

    A slang term referring to the situation of an investor who has experienced a large loss from an investment or speculative ...
  4. Black Friday

    1. A day of stock market catastrophe. Originally, September 24, 1869, was deemed Black Friday. The crash was sparked by gold ...
  5. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  6. Barefoot Pilgrim

    A slang term for an unsophisticated investor who loses all of his or her wealth by trading equities in the stock market. ...
Trading Center