Financial Conduct Authority
|ROYAL ASSENT: On December 19, 2012, the Financial Services Act was approved by Parliament. On April 1, 2013, the FSA was decommissioned and its regulatory authority will be transferred to the Bank of England, with regulatory new architecture consisting of the FCA, Prudential Regulatory Authority, and the Financial Policy Committee.|
|Financial Conduct Authority|
On June 16, 2010, the U.K. government unveiled a reorganization of the country's bank-regulatory system that would include splitting the FSA into three new agencies, including a bank-regulating subsidiary inside the Bank of England. The Bank would be given more power in supervising the financial sector and preventing systemic risks.<ref>U.K. Shakes Up Bank Regulation. The Wall Street Journal. Retrieved on March 30, 2011.</ref> The proposal was approved by Parliament on December 19, 2012. On April 1, 2013, the FSA was decommissioned and its duties transferred to the new agencies.<ref>U.K. Replaces ’Failed’ FSA With Prudential Regulatory Authority. Bloomberg. Retrieved on April 2, 2013.</ref>
Among the new agencies (outlined in the report: A New Approach to Financial Regulation: The Blueprint For Reform is the Financial Conduct Authority (FCA), which will ensure that business across financial services and markets is conducted in a way that advances the interests of all users and participants.<ref>[http://www.hm-treasury.gov.uk/d/consult_finreg__new_approach_blueprint.pdf A new approach to financial regulation: The Blueprint For Reform]. Bank of England. Retrieved on June 17, 2011.</ref>
Summary of FCA's Duties
- Regulation of the prudential standards and conduct of over 20,000 financial firms
- Protection of the financial sector, participants and the general public by making sure firms stick to the rules and consumers don’t fall victim to scams or get tied in to unfair contracts.
- Advocacy on behalf of consumers to make sure financial firms and advisers treat consumers fairly and keep to the FCA's rules and standards.
The FCA carries out its duties via annual (periodic) fees levied on financial firms, as well as application fees. For more on the FCA's fee structure, click HERE.
Introductory Video, April 2013
FCA CEO Martin Wheatley stars in this video, in which a variety of people offer opinions about the FCA, their hopes for the new regulator and the future of financial services. Published April 1, 2013.