FCA investigations and enforcement

The Financial Conduct Authority

The Financial Services Act 2012 (FSA 2012) created two regulators: the Prudential Regulation Authority (PRA) (the prudential regulator) and the Financial Conduct Authority (FCA) (the conduct regulator). FSA 2012 also clarified the focus and supervisory powers of these regulatory bodies. The FCA has a wide-ranging brief to regulate conduct in retail and wholesale markets, supervise the trading infrastructure behind those markets, and oversee prudential regulation of firms not prudentially regulated by the PRA. Most UK firms are solely regulated by the FCA for both prudential and conduct purposes. Along with the PRA, the FCA must also observe the principles of good regulation.

The FCA was given product intervention powers, and the investigatory powers of the regulators were strengthened, for example by giving them the ability to require the appointment of a skilled person to gather information required under the regulators’ rules. The FCA has the power to regulate benchmarks and has responsibility for the regulation of consumer credit. The FCA is also the AML/CTF supervisor of UK cryptoasset businesses under the Money Laundering, Terrorist Financing and Transfer of Funds (Information ...