The FCA is the body responsible for regulating financial institutions across the United Kingdom, thereby ensuring that the financial services market is fair and transparent. All institutions must adhere to a stringent set of regulations and high standards.
While many people are broadly aware of the role of the FCA, or Financial Conduct Authority, in monitoring the UK’s banks, building societies and insurance providers, not quite as many people know the breadth of institutions which are regulated by the FCA. Let’s have a more in-depth look at which businesses fall under the FCA’s watchful eye.
Not Just Banks
Of course, banks, building societies, insurers and credit unions all adhere to the FCA’s guidelines. In addition, any business which allows consumers to buy items or services on deferred payment terms must act in accordance with the FCA’s regulations, since they are in effect loaning money from one party to another, according to GOV.UK.
On a similar note, businesses that introduce their customers to an insurance firm also fall under the remit of the FCA. This is because they are effectively selling or guiding customers towards purchasing an insurance policy, which probably covers a product or service that they are selling.
Advice and Guidance
Of course, the overall aim of the FCA is to ensure that the United Kingdom’s financial services sector is fair and open, which benefits institutions and consumers alike.
If you are a small business owner or are looking at opening a start-up, you might feel unsure as to whether you will need to adhere to the FCA’s regulations or how you can meet the rules safely. Fortunately, FCA compliance consultants such as www.adempi.co.uk/ can offer expert advice in this area.
Other Businesses Governed by the FCA
With many cars in the UK being purchased on a finance agreement or a lease, it stands to reason that dealerships offering this sort of service are regulated by the FCA. Companies trading in crypto assets are also newly added to the register as this becomes more commonplace.