When it comes to financial services in the UK, the Financial Conduct Authority (FCA) is a key regulator that oversees the financial market and enforces regulations. They make sure the industry is fair and safe for everyone whether you’re a bank, lender or the everyday customer. But what is the FCA’s main purpose?

The FCA has 3 key responsibilities

Protecting consumers – Most individuals use financial services at some point from bank accounts to loans to pensions and insurance. The FCA use their authority to protect consumers when interacting with financial services. An example is a vulnerable customer. A customer who is in vulnerable circumstances could be at risk of being taken advantage of and the FCA are there to protect them.

Maintaining the integrity – They monitor and dictate who can and can’t enter the financial markets and set standards that any firm or individual must meet, or they will not be accepted. They then supervise anyone in the financial markets to make sure they are upholding their standards and if they aren’t then the FCA take action which can include handing out fines or even stopping firms from trading.

Promoting Competition – The FCA promotes competition between companies to give customers the best choices and get the best value. It is to encourage innovation while stopping dominant firms from abusing their position. They do this by supporting new, ethical businesses to enter the market as well as helping customers switch providers easily.

How Does the FCA Enforce Its Purpose?

The FCA has strong powers to ensure firms play by the rules. These include:

• Authorising firms and individuals before they’re allowed to offer regulated financial services
• Monitoring and supervising how firms operate day-to-day
• Investigating misconduct or breaches of rules
• Taking enforcement action, including fines, bans, and legal proceedings

The FCA also publishes guidance, rules, and updates to help firms stay compliant and to keep customers informed.

Who has to comply with the FCA?

Any business or individual offering regulated financial services in the UK must be authorised and approved by the FCA. And failing to comply with the FCA rules can result in serve penalties.

If you are unsure if your business is compliant with the FCA rules and regulations or are seeking any sort of guidance, then contact our team:

📧 Email us: sales@thecomplianceguys.co.uk

📞 Call us: 01792 926 040