Financial Conduct Authority

The Financial Conduct Authority (FCA) represents the largest financial regulator in the United Kingdom (UK).

The British regulator is one of the most well-known and respected in the world.

The FCA’s primary mandate is to oversee the proper conduct of firms authorized under the Financial Services and Markets Act 2000.

Additionally, the FCA is also responsible for overseeing the regulation of behavior across both retail and wholesale financial markets.

One of its most vital functions is the supervision of trading infrastructure that supports those markets.

The FCA is best known for its active role in protecting consumers, whereby keeping the financial industry stable, and promoting healthy competition between financial service providers.

Understanding the Role of the Financial Conduct Authority in Financial Markets

The FCA routinely publishes and updates a handbook that sets out its regulations, guidance, and provisions made by the authority.

In particular, the FCA possesses supervisory authorities over financial services firms conducting regulated activities.

This includes such as the offering of loans, car financing deals, any consumer credit, and other activities.

Investment firms carrying on certain activities concerning financial instruments such as shares and bonds, the Markets in Financial Instruments Directive (MiFID) requires you to be authorized.

Overall, the FCA takes an active role in policing all manners of financial activities conducted in the UK or by UK citizens.

Parliament has since given the FCA a single strategic objective.

This helps ensure that relevant markets function well by protecting consumers, integrity, and promoting competition.

The FCA has been a key authority within the forex industry, and every broker is familiar with the regulator.

The authority has over the years helped curb market abuse in the form of scams, schemes, clones, etc.

However, some investors and brokers have questioned the extent and tenacity of these regulations in recent years as it has taken a harder stance on investment products.

The FCA remains heavily involved in overseeing forex, contracts-for-difference (CFDs), and binary options.