Organizations on

Nature of Institution

government organs

Institutional History

FCA (Financial Conduct Authority) is the UK Financial Conduct Authority, established on April 1, 2013, headquartered in London, UK. Its predecessor was the Financial Services Authority (FSA) of the United Kingdom.

Institutional functions

FCAThe FSA has taken over the regulatory responsibility for UK financial market behavior and related prudential duties. It is committed to creating a good financial market order for individuals, large, small, and medium-sized enterprises, and economies, so that consumers can conduct transactions efficiently and fairly.

The FCA regulates the behavior of the UK financial market and over 59000 financial services companies, while also providing prudent supervision for over 49000 companies and setting special standards for 19000 companies.

FCA is an independent public institution that operates by charging fees to regulated businesses, not belonging to the Bank of England, responsible to the UK Treasury, the UK financial system, and Parliament.

Institutional objectives

The work and objectives of FCA are regulated by the UK Financial Services and Markets Act (FSMA) of 2000. FCA collaborates with consumer groups, trade associations, professional institutions, domestic regulatory agencies, EU legislative bodies, and numerous relevant departments. Therefore, it adopts management methods that are appropriate to its scope of authority, prioritizing the management of regions and enterprises that pose higher risks to the financial market.

FCA'sstrategic objectiveYes: Ensure the effective operation of market mechanisms.

FCA'sexecution targetYes:

(1) Protecting Consumers - Providing Moderate Protection for Consumers

(2) Maintaining Financial Markets - Protecting and Enhancing the Integrity of the UK Financial System

(3) Promoting market competition - promoting effective competition related to consumer interests

FSA and PRA

FSAThe Financial Service Authority is the UK Financial Services Authority, which regulates the UK financial market, exercises statutory duties, and is responsible to the UK Treasury.

The FSA and the Bank of England (BOE) are both under the Ministry of Finance, with the FSA responsible for strict regulation of all financial service institutions registered within the UK, while the BOE primarily maintains the stability of the financial system.

On April 1, 2013, the Financial Services Authority (FSA) in the UK was replaced by two parallel regulatory bodies, the Financial Conduct Authority (FCA) and the Prudential Financial Regulation Authority (PRA),The FCA is responsible for the regulation of financial market behavior in the UK and related prudential supervision.

PRAThe Prudential Regulation Authority is the UK's Prudential Authority, established under the Financial Services Act (2012) and subordinate to the Bank of England.

Prudential regulation requires companies to hold sufficient capital and develop appropriate risk control measures. If the enterprise does not operate in a safe and reasonable manner, or if the insurance company does not adequately protect policyholders, PRA can intervene and take measures.

The Bank of England conducts prudent supervision of financial service companies through PRA,Currently PRAResponsible for the prudent supervision of approximately 1500 financial enterprises (banks, construction associations, credit cooperatives, insurance companies, and major investment companies).