What is Financial Conduct Authority (FCA)?

The Financial Conduct Authority (FCA) was established on April 1, 2013, under the responsibility of conduct and related precautionary regulation from the Financial Services Authority (FSA). FCA is an independent government agency responsible for the treasury. It regulates 58,000 financial firms and markets in the UK and acts as an alert regulator for more than 18,000 organizations. Its purpose is that markets work well for large and small businesses. In addition, banks, independent financial advisors, and mutual communities are businesses under The FCA's supervision. 

The FCA is the body responsible for regulating the financial service industry in the UK and operates independently of the UK government. It is promoted as the FSA. FCA's goals include protecting consumers, increasing competition, and managing the integrity of the market. The main focus is to regulate monetary firms' behavior in the retail and wholesale sectors. As part of this focus, it has the power to investigate abuse, regulate the marketing of products, and manage minimum standards.

How Does The Financial Conduct Authority (FCA) Work?

The Financial Conduct Authority (FCA) is also responsible for promoting effective competition, ensuring the proper functioning of all financial service companies' relevant markets and regulations. This includes preventing market abuse and ensuring that consumers make a fair deal from firms. The Financial Conduct Authority states that its general aim is to "ensure that markets and monetary systems are robust, stable, and flexible, and provide transparent pricing information that consumers can easily understand.

The Government has determined this responsibility underneath the 2012 Financial Services Act. The Financial Conduct Authority has three operational objectives to support this key objective: offering an appropriate safety diploma for consumers. To guard and enhance the integrity of the UK economic system. Finally, they promote effective opposition for the advantage of consumers. Its operational goals are to defend consumers, defend markets, and promote opposition. Furthermore, the UK works with patron groups, exchange institutions and professional organizations, EU legislators, and a wide variety of different stakeholders.

The Powers of FCA

The Financial Conduct Authority has some powers:

  • Examining organizations or individuals,
  • Ban products or services for up to one year when considering a permanent ban,
  • Ensuring that customer treatment is fair,
  • To play a supervisory role with banks and authorized payment institutions to monitor healthy competition and detect risks early.

FCA Regulations

The Financial Conduct Authority aims to ensure that markets operate competitively and fairly in the UK, benefit customers, staff, and shareholders, and maintain trust in the UK as a major global monetary center. It publishes some regulations for this purpose. One of these regulations it publishes includes anti-money laundering regulations. 

Based on FCA's AML regulations, FI must perform risk assessments and due diligence procedures. Organizations obliged to comply with the regulations must closely follow and comply with FCA regulations.

Click for detailed information on FCA money laundering regulations.

Some Industries and Companies Regulated by The FCA


The Financial Services Act 2012 set out a new system regulating financial services to protect and develop the UK economy. In this determined regulation, FCA will control the bans on the following issues:

  • Ensuring that banks treat their customers fairly
  • Promoting innovation and healthy competition
  • Help the FCA identify potential risks early so they can take action to reduce risks

Mutual Societies

There are over 10,000 mutual societies in the UK, and the FCA is responsible for:

  • Maintaining public records
  • Registration of new mutual communities
  • Receiving annual returns