What You Must Know About the Financial Conduct Authority (FCA) in 2022

What’s the Financial Conduct Authority (FCA) & What Does It Do?
Contributors: Nicola Date, Katherine Read. Edited by Rachel Wait & Reviewed by Francis Hui
What’s the Purpose of the Financial Conduct Authority (FCA) in 2022? Discover Its 4 Main Objectives & How It Protects Customers. Keep Reading to Find Out More…

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Unless you’ve been living under a rock, you’ve probably heard of the Financial Conduct Authority (FCA) in almost all finance-related matters in the UK.

If you’re considering following the lead of countless equity release beneficiaries, then the last thing you want to do is find yourself dealing with an unscrupulous financial provider. 

Fortunately, the Financial Conduct Authority (FCA) has got you covered.

What You’ll Learn in This Article:

    Our trusted equity release experts have answered all your burning questions about the FCA. Here’s what you MUST know so you don’t get caught.

    Keep on reading!

    What’s the Financial Conduct Authority (FCA)?

    The Financial Conduct Authority (FCA) is an industry regulator in the UK that ensures fair, honest and competitive industry dealings.

    What Does the Financial Conduct Authority Do?

    The Financial Conduct Authority regulates the conduct of financial services providers, supervises participating firms, and sets stringent standards to be adhered to.

    What Are the 4 Main Objectives of the FCA?

    The 4 main objectives of the FCA are:

    • To ensure that markets and financial systems are sound, stable and resilient, with clear pricing information that consumers can easily understand.
    • To secure an appropriate degree of protection for consumers. 
    • To protect and enhance the integrity of the UK financial system. 
    • To promote effective competition in the interests of consumers.

    Understanding the Financial Conduct Authority

    The Financial Conduct Authority regulates services within the financial industry in the UK, alongside the Prudential Regulatory Authority (PRA).

    The core purpose of its operations is to protect customers from unscrupulous firms.

    Service providers need to pay a membership fee to be listed on the financial services register, where regulated firms are listed.

    The FCA ensures that its members adhere to the stringent guidelines and standards it sets, to avoid suspension or deregulation.

    Financial Conduct Authority Powers

    The Financial Conduct Authority’s powers are all aimed at protecting customers from potentially dealing with unscrupulous and unregulated firms.

    The FCA’s powers include:

    • Withdrawing a firm’s authorisation.
    • Prohibiting individuals from carrying on regulated activities.
    • Suspending firms and individuals from undertaking regulated activities.
    • Issuing fines against firms and individuals who breach our rules or commit market abuse.
    • Issuing fines against firms that breach competition laws.
    • Making a public announcement when it commences with disciplinary action.
    • Publishing details of warnings, decisions, and final notices.
    • Applying to the courts for injunctions, restitution orders, winding-up, and other insolvency orders.
    • Bringing criminal prosecutions to tackle financial crime, such as insider dealing, unauthorised business, and false claims to be FCA-authorised.
    • Issuing warnings and alerts about unauthorised firms and individuals, as well as requesting that web hosts deactivate associated websites.

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    The Functions of the Financial Conduct Authority

    The functions of the Financial Conduct Authority include rule-making, investigating and enforcing corrective measures to protect customers.

    Financing the Financial Conduct Authority

    The Financial Conduct Authority’s financed through membership fees of, as it operates independently of the UK Government.

    What Can the FCA Do if There’s an Allegation of Wrongdoing?

    If there’s an allegation of wrongdoing, the FCA can gather the relevant information and documentation relating to the allegations.

    Thereafter, the team will review the merit of it and take the most fitting action against the alleged perpetrator.

    The formal action taken against the firm may include withdrawal of its authorisation, suspension, or prohibition from continuing with regulated activities, among others.

    The FCA & Equity Release

    The FCA regulates service providers in the equity release market to prevent customers being taken advantage of.

    The majority of firms in the financial industry must register to be listed on the financial services register for credibility.

    The FCA also has a list of firms that are not regulated, but may be posing as though they are, to alert customers.

    FCA Contact Details

    The FCA’s contact details are as follows:

    +44 (0)20 7066 1000

    firm.queries@fca.org.uk

    12 Endeavour Square

    London

    E20 1JN

    Common Questions

    What Does the FCA Have Authority Over?

    How Does the FCA Protect Consumers?

    How Does the FCA Monitor Businesses?

    Does the FCA Have Criminal Prosecution Powers?

    What Are the 3 Operational Objectives of the FCA?

    In Conclusion

    With equity release being a hot topic among senior homeowners in the UK, it’s vital to deal with a regulated provider that’s got your best interests at heart.

    Fortunately, the FCA exists to safeguard you from potentially dealing with fraudulent and suspicious firms.

    To find out who the reputable service providers are in the financial industry, verify their credentials on the Financial Conduct Authority register before proceeding!

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