The FCA is the backbone of the financial services market in the United Kingdom, ensuring that services and providers are regulated and offer a fair service.
The FCA, or Financial Conduct Authority to give it its full name, supervises and regulates over 41,000 businesses in the UK. By having a clear regulatory framework, everyone who is involved with a financial institution can be sure that they are subject to certain conditions and standards, according to Gov.UK.
Why do we need the FCA?
The importance of the FCA can’t be overestimated. Almost everyone engages with a financial institution at some point – whether this be to borrow money in the form of a loan or a mortgage, to invest savings, or to simply perform day to day banking. The FCA ensures that all the processes across financial institutions are regulated and transparent, giving consumers complete clarity over what products are available, terms and conditions, and where they can access impartial advice.
If you are involved with a financial institution or simply wish to obtain more specialist information on the work of the FCA, FCA compliance consultants, such as www.adempi.co.uk/, specialise in matters of financial conduct.
How does the FCA work?
The FCA has head offices in London, with other offices around the UK including in Leeds, Belfast and Cardiff. Staff at the FCA work to protect both consumers and the integrity of the UK’s financial market. A large part of this is achieved by drafting new rules, guidance and standards which financial institutions must uphold. They are also the only body which is responsible for authorising and registering financial institutions.
Institutions which are subject to the FCA’s rules and regulations include high street banks, building societies, investment companies, insurance providers and credit unions. All must adhere to the FCA’s standards, ensuring a fair and transparent market which is, of course, key to the UK’s financial services sector.
The FCA also analyses data in order to act promptly on any problems which are brought to light and take steps to protect the financial services market.
