Have you ever noticed financial companies showcasing their ‘FCA regulated’ status? It’s important for financial businesses to be FCA regulated, but understanding what this means for you is just as important. In this guide, we take a look at what FCA regulated really means for consumers and the importance behind the regulation.

What is the FCA?

The Financial Conduct Authority (FCA) was first created by Parliament in 2013 and has since then been the government’s key regulator of financial services throughout the UK.

The FCA applies regulation in a way which benefits most those who use the financial services, rather than the services themselves, regulating over 56,000 firms nationwide.

A statement on the FCA website says:

UK financial services employ over 2.2 million people and contribute £65.6bn in tax to the UK economy. If UK markets work well, competitively and fairly they benefit customers, staff and shareholders, and maintain confidence in the UK as a major global financial hub. Our role is to help ensure this happens.”

Do all financial businesses need to be FCA regulated?

Some financial services firms may be authorised by the FCA, while others may be registered. This really depends on the nature of the company and the requirements set out by the FCA. Examples of firms which might be regulated include:

  • Financial services firms – such as banks, credit unions or insurance firms.
  • Consumer credit firms – such as brokers or lenders.
  • Investment firms – including firms that deal with shares and bonds.
  • E-money and payment firms – including businesses offering pre-paid cards or e-money.

The FCA also regulated businesses based in the EU and the rest of the world that might be dealing with customers in the UK.

Why is it important to be regulated by the FCA?

When you’re dealing with a financial company, it’s important to always lookout for an FCA regulation. If you can’t see an FCA regulation clearly displayed anywhere, it’s always worth checking with the company beforehand or searching for them on the Financial Services Register.

FCA regulations are particularly important when you’re looking to invest your money. For an investment firm to be regulated by the FCA, they must first meet certain requirements to deem them suitable for consumers. The FCA will ensure the company can make suitable decisions and can also be held accountable for their actions.

Once this FCA regulation is in place, your investment is protected should anything go wrong at the hands of financial mis-selling. This has been the case for many online scams, including mis-sold pension investments, in which consumers have got their money back thanks to money set aside by the FCA.

Expert Pension Claims are FCA regulated

Here at Expert Pension Claims, we’re proud of our FCA regulation. In fact, we’re regulated and authorised by the Financial Conduct Authority in respect of regulated claims management activity. This means that customers like you can be confident your mis-sold investment claims are in safe hands.

If you’ve been unfortunate to lose money to a mis-sold pension investment, get in touch with our team today to get started with your FCA regulated claim.