FCA

The acronym FCA means Financial Conduct AuthorityIn French, it can be referred to as the British authority for financial conduct regulation.

Created on April 1st 2013the FCA took over behavior oversight tasks and certain prudential functions from the former Financial Services Authority, or FSA.

It is an independent public body, funded by contributions from regulated companies. Its legal framework is mainly based on the Financial Services and Markets Act 2000. FCA

The FCA therefore does not just maintain a register: it performs regulation, authorization, supervision, and sanctioning functions.

Protect financial consumers

The FCA defines requirements intended to regulate the treatment of clients by financial firms.

It notably monitors the implementation of the Consumer Duty, which strengthens expectations regarding consumer protection. Affected companies must provide understandable communications, appropriate assistance, and products and services that meet their clients' needs. FCA

Preserve market integrity

The FCA intervenes to contribute to honest and fair financial markets.

This mission complements individual client protection: it also concerns trust in the system and market functioning. FCA

Authorize and supervise professionals

Depending on the activities carried out, companies must have the appropriate status.

The FCA examines the conditions for access to activities within its competence, then monitors compliance with applicable rules. It can take action when requirements are not met. FCA

Inform about fraud and unauthorized actors

The FCA issues warnings about unauthorized companies and identity theft.

This information complements the research carried out in its official tools. They notably make it possible to identify offers abusively using the name of a genuine financial institution. FCA

The Prudential Regulation Authority, or PRA, belongs to the Bank of England. It exercises prudential supervision of banks, insurers, and other institutions within its scope.

This supervision focuses in particular on their soundness and their capacity to meet their commitments. www.bankofengland.co.uk

This distinction should be nuanced: the FCA also ensures the prudential supervision of many firms that do not fall under the PRA. It would therefore be incorrect to reserve all British prudential control to the latter. FCA

The same institution can fall under the PRA for prudential aspects and under the FCA for conduct rules.

The FCA tools allow searches for many providers involved in UK financial services.

Depending on status and activity, the search may concern an advisor, intermediary, a firm offering financial products, or a company providing investment services.

However, detailed information must be examined: a company listed in an official tool does not necessarily have broad authorization for all services.

The FCA recommends verifying both the professional's status and the permissions corresponding to the product or service envisaged. FCA

The terms used in British tools must be read precisely.

An "authorised" firm

An authorised firm has permissions to provide certain regulated activities. The scope of these permissions remains decisive.

A "registered" firm

A registration corresponds to a different framework. It does not alone allow the provision of regulated products or services requiring authorisation.

The FCA also highlights that the protections available to clients may vary according to this status. A simple mention "registered with the FCA" should therefore not be interpreted as equivalent to an authorisation covering all financial services. FCA

To compare professionals, the exact displayed status must be taken and the related activities examined.

The FCA Firm Checker is a tool intended for consumers. It allows verifying if a firm is authorised and if it holds the necessary permissions to provide the sought service.

However, the FCA specifies that this tool does not allow confirming with certainty the application of the Financial Ombudsman Service or FSCS protections to a particular situation. FCA

To perform a verification:

1. identify the exact legal name of the provider;
2. search for the firm from the official FCA website;
3. check its current status;
4. review the covered services;
5. compare the contact details with those of your correspondent.

A trade name or a reference number provided by a cold caller is not sufficient to establish their identity.

The Financial Services Register is the official public register of firms, individuals and other bodies that are, or have been, authorised by the FCA or the PRA.

It provides more detailed information than the Firm Checker, notably on regulatory history, certain sanctions and firms' permissions. FCA

It is important to distinguish a current authorisation from a former authorisation. A firm's historical presence in the register does not prove it can still carry out the intended activity.

Useful link: Financial Services Register.

A firm may appear as appointed representative, often abbreviated as AR.

It then carries out certain activities on behalf of a company called principal, which defines the authorized activities and assumes responsibility within this framework.

It is therefore necessary to verify:

• the identity of the representative;
• that of their principal;
• the services covered by their relationship.

The FCA recommends contacting the principal if in doubt. If the representative exceeds the permitted scope, protections from the Financial Ombudsman Service or FSCS may not apply. FCA

The status of appointed representative must thus be examined separately from the firm's own authorization.

The FCA uses the term "clone firm" to designate a fraud in which people impersonate a genuinely authorized firm.

Fraudsters may use its name, reference number, or certain presentation elements.

To limit this risk, compare the contact details provided with those in official tools and contact the company through an independently verified channel. The FCA emphasizes this verification of contact information. FCA

Searching for a regulatory number must always be accompanied by verification of the actual identity of the provider.

A British authorization does not, alone, constitute authorization to provide regulated services in France.

Since the end of the Brexit transition period, the financial passport between the UK and the European Economic Area is no longer applicable. www.fca.org.uk

A French client must verify the conditions allowing the provider to offer the planned service, including:

• the entity with which the contract is concluded;
• its country of establishment;
• the applicable authorizations;
• the terms of operation in France.

The reputation of a British group or its status with the FCA does not replace this analysis.

No. An authorization guarantees neither the profitability of an investment nor the absence of loss.

The FCA specifies that using an authorized company with the correct permissions reduces certain risks, without eliminating them. FCA

Before investing, the product characteristics must be examined separately: fees, liquidity, duration, assets held, and any contractual guarantees.

Three elements must also be distinguished:

The FCA: the regulator

The FCA defines and enforces rules within its scope of competence.

The Financial Ombudsman Service: disputes

The Financial Ombudsman Service is an independent and free service that can review certain disputes between clients and financial firms.

It intervenes subject to applicable conditions and after an initial complaint has been made to the professional. FCA

The FSCS: certain failures of institutions

The Financial Services Compensation Scheme, or FSCS, can compensate eligible claimants when firms cannot meet certain claims related to covered activities.

It does not constitute general insurance against market losses. Its intervention notably depends on the firm, the activity, and the eligibility of the claim. The FCA and the FSCS are separate, and the latter makes its individual decisions independently. FCA

Start by submitting a complaint to the professional and keep a copy of the exchanges.

If the response is unsatisfactory or if the professional does not reply within the applicable timeframe, the Financial Ombudsman Service may have jurisdiction. Admissibility conditions and deadlines must be checked during the process.

Reporting fraud or malpractice to the FCA is a distinct process from handling an individual dispute. FCA

The FCA serves as a reference point to verify British financial professionals. To choose a representative, you need to confirm their identity, status, and authorized services.

Then examine their specialties, remuneration, and terms of support. For cross-border relationships, also check the rules applicable in your country of residence.

You can find professionals on Les Experts du Patrimoine, then complete your search with the official FCA tools.