Regulated by the FCA
The FCA (Financial Conduct Authority) have rule-making, investigative and enforcement powers that are used to protect and regulate the financial services industry. They are fair and principled in their approach to regulation.
They use forward-looking and judgement based regulation, with a view to understanding firms’ business models and future strategies. They intervene if they see unacceptable risks to the fair treatment of customers or the integrity of the market and they carry out our regulation in a combination of ways.
The FCA regularly assess firms’ conduct, varying the intensity of their assessments based on the nature and size of the firm. They place firms in four different categories. The largest firms, with the most customers, face continuous assessment over rolling two-year periods. The assessments become progressively less intense for firms in the three other categories, with firms in category four having some form of assessment every four years.
They carry out work on issues and products, undertaking fast, intensive campaigns on sectors of the market or products that are putting or may put consumers at risk. This work is driven by a sector risk assessment, which analyses the different areas of the market and the risks that may lie ahead.