FCA

The FCA, or Financial Conduct Authority, is the UK regulator responsible for making sure financial services firms treat customers fairly, markets work properly and financial crime is tackled. If you use a bank, take out a mortgage, invest money, buy insurance or apply for credit, the FCA’s rules are likely to affect the service you receive.

Many people only hear about the FCA when something goes wrong, such as a firm being banned, a scam warning being issued or a complaint needing escalation. But its work is much broader. This guide explains what the FCA does, which firms it regulates, how it protects consumers and what to do if you have a problem with a financial product or service.

The FCA’s work matters because financial decisions can have long-term consequences. A mortgage, pension, insurance policy or investment can affect household finances for years, so it is important to understand who regulates the firm and what protection you have.

What is the FCA?

The FCA is the Financial Conduct Authority, an independent public body that regulates the conduct of financial services firms and markets in the UK. It works alongside HM Treasury, the Bank of England and the Prudential Regulation Authority, which oversees the financial safety and soundness of many major firms.

Its stated purpose is to enable a fair and thriving financial services market for the good of consumers and the economy. In practice, that means setting rules, authorising firms, supervising their behaviour, publishing warnings and taking enforcement action where necessary.

The FCA regulates the conduct of around 35,500 businesses in the UK. These include banks, building societies, insurers, mortgage lenders, investment firms, financial advisers, credit providers, payment firms and many other businesses that carry out regulated financial activities.

What does the FCA regulate?

The FCA’s remit covers a wide range of financial services. If a firm is authorised or registered by the FCA, it must meet the regulator’s standards and follow its rules. Examples include:

• Banks and building societies.
• Mortgage lenders and brokers.
• Credit card companies and consumer-credit firms.
• Insurers and insurance brokers.
• Investment platforms, fund managers and financial advisers.
• Pension providers and workplace pension schemes.
• Payment service providers and e-money firms.
• Some cryptoasset firms carrying out regulated activities.
• Debt-collection firms and claims-management companies.

Not every financial business is regulated in the same way. Some activities fall outside the FCA’s full regulatory perimeter, and some firms are regulated by other bodies. This is why checking the FCA’s Financial Services Register is important before handing over money or personal information.

The FCA’s main objectives

The FCA has three operational objectives.

Protect consumers

The FCA aims to ensure that consumers receive a fair deal. This includes requiring firms to communicate clearly, sell suitable products, handle complaints properly and avoid misleading advertising.

Its Consumer Duty, which came into force in 2023, raised expectations for firms offering products and services to retail customers. Firms are expected to act to deliver good outcomes for customers, avoid foreseeable harm and support people in making effective financial decisions.

Protect market integrity

The FCA works to keep UK financial markets honest, fair and resilient. This includes tackling market abuse, insider dealing, money laundering, fraud and misleading disclosures.

Market integrity matters to everyone, not only City investors. Stable and trustworthy markets help businesses raise finance, protect savings and support the wider economy.

Promote competition

The FCA also seeks to promote effective competition in the interests of consumers. In a competitive market, people should be able to compare products, switch providers where appropriate and benefit from innovation.

Competition does not simply mean more firms. It means markets that work well for consumers, with clear information, fair pricing and products that meet genuine needs.

How the FCA regulates firms

The FCA uses several tools to regulate the financial sector.

Authorisation and registration

Firms and individuals must be authorised or registered by the FCA to carry out many regulated activities. Before authorising a firm, the regulator assesses whether it meets required standards, including governance, financial resources, competence and systems to prevent financial crime.

Authorisation is not a one-off event. Firms must continue to meet the FCA’s standards after they are authorised, and the regulator can impose conditions, restrictions or remove authorisation if they do not.

Supervision

The FCA supervises firms to reduce actual and potential harm. It uses data, reviews, thematic work and direct engagement to identify risks across the market.

Its approach is intended to be proportionate. Higher-risk firms and areas with greater potential consumer harm receive more attention than lower-risk activities. The FCA has said it aims to prevent harm before it happens, rather than only responding after problems emerge.

Enforcement

Where firms or individuals breach the rules, the FCA can take enforcement action. This can include fines, public censure, restrictions on activities, banning individuals from working in financial services and, in some cases, criminal prosecution.

Enforcement also sends a message to the wider market that poor conduct, financial crime and consumer harm have consequences.

What is the Consumer Duty?

The Consumer Duty is one of the FCA’s most important recent reforms. It requires firms to act to deliver good outcomes for retail customers.

The Duty is built around four outcomes:

• Consumers receive products and services that meet their needs and offer fair value.
• Consumers understand the products and services they are buying.
• Consumers receive the support they need, when they need it.
• Consumers do not face unreasonable barriers to pursuing their objectives, switching products or making complaints.

For customers, this should mean clearer information, fairer treatment and better support. For firms, it means they must be able to show that their products, pricing, communications and customer service are designed to produce good outcomes.

How the FCA protects consumers

The FCA protects consumers in several practical ways.

The Financial Services Register

The FCA’s Financial Services Register lets consumers check whether a firm or individual is authorised and what permissions they hold. This is one of the simplest ways to reduce the risk of dealing with a clone firm or unauthorised business.

The register can show a firm’s contact details, permissions, regulatory status and whether it is linked to a larger group. If a firm claims to be FCA-regulated but does not appear on the register, that is a serious warning sign.

Scam warnings

The FCA publishes warnings about firms and individuals that may be operating without authorisation or running scams, including investment fraud, crypto scams, loan fraud and pension scams.

In October 2026, the FCA published new warnings about firms including Bit Trade Master, Trade Asset Limited and Maxluxury Marketing. Warnings change regularly, so consumers should check the FCA website before investing or transferring money to a new provider.

Complaints rules

If you are unhappy with a financial product or service, the FCA requires authorised firms to handle complaints fairly, consistently and promptly. You should first complain directly to the firm and keep a record of what you said and when.

In general, firms must acknowledge complaints in writing unless they resolve them within three business days. They must normally provide a final response within eight weeks. Payment service providers and e-money issuers have different time limits for certain complaints, with a final response generally required within 35 business days.

Financial Ombudsman Service

If you are unhappy with a firm’s response, or it does not respond in time, you may be able to refer the complaint to the Financial Ombudsman Service. It is a free and independent service that resolves disputes between consumers and financial businesses.

The Ombudsman can consider many types of complaint, from banking and insurance issues to investments, mortgages, loans and payment problems.

What the FCA does not do

It is equally important to understand what the FCA does not do.

The FCA does not normally investigate individual complaints about firms. If you have a problem with a bank, insurer, lender or adviser, you should first complain to that firm. The FCA can consider reports about misconduct or scams, but it cannot usually resolve an individual consumer dispute.

The FCA is also not a compensation scheme. The Financial Services Compensation Scheme, or FSCS, may protect eligible customers if an authorised firm fails and owes them money. Protection depends on the type of firm, product and circumstances.

Finally, the FCA cannot guarantee that an investment will perform well. Regulation can reduce the risk of misconduct, but it cannot remove investment risk entirely.

Why the FCA matters in Worcester

People in Worcester use financial services every day, whether through high-street banks, mortgage advisers, insurance providers, credit unions, payday lenders or online investment platforms. The FCA’s rules affect how those businesses communicate, sell products and handle problems.

Local consumers should be especially careful with online offers. Scammers often target people through social-media adverts, messaging apps, cold calls and cloned websites. They may use the name, registration number or logo of a genuine firm to appear credible.

Before transferring money, check the firm on the FCA Register, use the contact details listed there rather than those supplied in an email or advert, and be cautious if you are pressured to act quickly. If something looks too good to be true, it often is. For Worcester residents, understanding the FCA is part of understanding the protections that apply when managing money, borrowing, saving or investing.

Recent FCA priorities

The FCA’s work evolves as financial markets change. Recent areas of attention include financial crime, anti-money-laundering controls, digital markets, artificial intelligence and consumer outcomes. In October 2026, the FCA restricted six unregulated lenders, known as Annex 1 firms, after concerns were raised about their anti-money-laundering policies, controls and procedures. It also called on private-market firms to manage conflicts of interest as the sector grows. These developments show that the FCA is trying to balance strong consumer protection with a financial sector that can innovate and grow.

How to check a financial firm

Before using a financial firm, take a few simple steps.

• Search the firm’s name on the FCA’s Financial Services Register.
• Check that the firm has permission for the exact service it is offering.
• Use the contact details on the Register, not those in an unsolicited email, advert or message.
• Be cautious if a firm asks for payment in cryptocurrency, gift cards or through an unusual route.
• Avoid firms that promise guaranteed returns or pressure you to invest quickly.
• Keep records of communications, contracts and payment details.

If you believe you have been targeted by a scam, report it promptly. In England, Wales and Northern Ireland, the FCA advises consumers to contact the FCA and Action Fraud. In Scotland, consumers should contact the FCA and Police Scotland.

Frequently asked questions

What does FCA stand for?

FCA stands for Financial Conduct Authority. It is the UK regulator for the conduct of financial services firms and markets.

Is the FCA a government department?

No. The FCA is an independent public body. It works with HM Treasury and other regulators, including the Bank of England and the Prudential Regulation Authority.

How do I know if a firm is FCA-regulated?

Use the FCA’s Financial Services Register or Firm Checker. Check that the firm is authorised and has permission for the specific service it is offering.

Can the FCA get my money back?

Not usually. The FCA regulates firms and can take enforcement action, but individual compensation or dispute resolution is normally handled by the firm, the Financial Ombudsman Service or the Financial Services Compensation Scheme, depending on the situation.

How do I complain about a financial firm?

Complain first to the firm. If you are unhappy with its response, or it does not reply within the required time, you may be able to refer the matter to the Financial Ombudsman Service.

Does the FCA regulate cryptoassets?

Some cryptoasset activity is regulated, but not all of it. The FCA has been expanding its oversight of cryptoasset firms and activities, so consumers should check the status of any provider and be especially cautious about investment scams.

A final word

The FCA plays a central role in keeping the UK financial system fair, transparent and trustworthy. Its work affects everything from the mortgage you apply for to the investment platform you use and the way a bank handles a complaint.

For consumers, the most useful habit is simple: check before you trust. Use the FCA Register, understand what protection applies to your product and speak up if something goes wrong.