What is the 'Financial Conduct Authority (UK) - FCA'

As the regulator of the financial services industry in the United Kingdom, the Financial Conduct Authority (FCA) has the strategic goal of ensuring that financial markets in the U.K. function well.

BREAKING DOWN 'Financial Conduct Authority (UK) - FCA'

The Financial Conduct Authority (FCA) has three operational objectives in support of its 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 on April 1, 2013, taking over responsibility for conduct and relevant prudential regulation from the Financial Services Authority. 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 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.

Financial Conduct Authority (FCA) Powers

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 such as 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. Financial Services Authority - ...

    Regulating body for all providers of financial services in the ...
  2. Regulated Market

    A regulated market is a market over which government bodies or, ...
  3. Regulation C

    Regulation C is a regulation that orders depository institutions ...
  4. Authorized Stock

    Authorized stock is the maximum number of shares that a corporation ...
  5. Authorized Participant

    Authorized participants are one of the major parties at the center ...
  6. Authorized Forex Dealer

    An authorized forex dealer is a regulated company to transact ...
Related Articles
  1. Tech

    The Exciting World Of The Top Spread Betting Brokers

    Spread betting can be fun, but it's risky and you will want a reliable broker. Here are the top spread betting brokers.
  2. Insights

    Financial Regulations: Glass-Steagall to Dodd-Frank

    Here are some of the most important financial regulations that have been established.
  3. Tech

    What Are the Biggest Risks Associated With Banks Today?

    Evolving mechanisms and techniques of cybercrime have become the most severe risk associated with banks today.
  4. Personal Finance

    How the Financial Services Sector Differs From Banks

    Learn about the difference between the banking industry and the financial services sector and how to distinguish financial goods from financial services.
  5. Insights

    Free Markets: What's The Cost?

    Some argue that when the free market fails to protect consumers, government regulation is required.
  6. Personal Finance

    Policing The Securities Market: An Overview Of The SEC

    Find out how this regulatory body protects the rights of investors.
  7. Financial Advisor

    Why the Financial Industry is Still Broken

    Most financial professionals are good people, but the U.S. financial system is set up in a way that doesn’t typically place clients' best interests first.
  8. Insights

    How States May Regulate Wall Street Under Trump

    Donald Trump’s stunning election upset brings with it many questions about the future of the financial regulatory industry.
  9. Investing

    Ford Vs. Dodge: Comparing Under the Hood (F, FCAU)

    Explore the recent financial performance of Ford Motor Company and Dodge's parent company, Fiat Chrysler, comparing growth, profits, efficiency and outlook.
RELATED FAQS
  1. What are the biggest trends affecting the profitability of the financial services ...

    Explore the trends that most affect the financial services sector, including the role of central bank policy and challenges ... Read Answer >>
  2. How are investment banks regulated in the United States?

    Read about the extensive regulations placed on investment banks in the United States, beginning with the Glass-Steagall Act ... Read Answer >>
  3. What is the difference between authorized shares and outstanding shares?

    Calculating financial ratios can help investors understand a company's financial position, but only when a knowledge of various ... Read Answer >>
  4. What are the objectives of financial accounting?

    Learn about the principle objectives of financial accounting, including the furnishing of the financial statements for those ... Read Answer >>
Trading Center