Dealing with the Financial Conduct Authority
Produced in partnership with Esther Schutzer-Weissmann of 6KBW College Hill
Dealing with the Financial Conduct Authority

The following Risk & Compliance guidance note Produced in partnership with Esther Schutzer-Weissmann of 6KBW College Hill provides comprehensive and up to date legal information covering:

  • Dealing with the Financial Conduct Authority
  • Role
  • Powers
  • Objectives
  • How the FCA works
  • System of compliance checks or visits
  • Enforcement strategy
  • Attracting the FCA’s (unwanted) attention
  • If the FCA comes knocking
  • The FCA’s usual approach
  • more

The Financial Conduct Authority (FCA) is a UK financial regulatory body established by Act of Parliament in 2013. It is independent of government and is funded by fees charged to the financial services sector.

Role

The FCA regulates UK financial services providers which must be registered and authorised by the FCA. It maintains a register of service providers and products that can be accessed by users. It provides the mechanism for implementing EU rules and directives.

The FCA regulates the conduct of over 58,000 bodies which provide services to consumers. It is also the prudential regulator of a further 18,000, requiring financial firms to control risks and hold adequate capital.

The role of the FCA is to ensure that financial markets are honest, open and fair and that consumers get a fair deal.

Powers

The FCA has a wide range of statutory powers by which it seeks to achieve its aims. It has power to create rules to govern the way financial service providers operate, to supervise and monitor compliance and to enforce compliance by investigating and sanctioning breaches, both by firms and individuals.

The FCA has criminal, civil and regulatory enforcement powers. What power is available depends on whether the target is a firm or an individual. It can:

  1. withdraw a firm's authorisation

  2. prohibit individuals from carrying on regulated activities

  3. suspend