Financial Conduct Authority
(FCA)Regulatory Snapshot
The Financial Conduct Authority is the principal regulatory body overseeing financial markets in the United Kingdom. Established in 2013 as a successor to the Financial Services Authority, the FCA operates independently of the UK Government and is funded entirely by fees charged to the firms it regulates. It supervises over 50,000 financial services firms and maintains one of the most rigorous compliance frameworks in the global financial industry.
About the FCA
The Financial Conduct Authority (FCA) serves as the United Kingdom's foremost financial regulatory body, responsible for ensuring that financial markets function with integrity and that consumers receive fair treatment. Since its establishment in April 2013, the FCA has built a reputation as one of the world's most respected and stringent financial regulators.
Regulatory Framework
The FCA's regulatory approach is built on three operational objectives: protecting consumers, enhancing market integrity, and promoting effective competition. All forex brokers and financial service providers operating in the UK must obtain FCA authorisation and comply with its extensive rulebook, which aligns with MiFID II European standards.
Investor Protection
Retail clients trading with FCA-authorised brokers benefit from comprehensive safeguards. The Financial Services Compensation Scheme (FSCS) provides protection of up to £85,000 per eligible claimant in the event a firm becomes insolvent. Additionally, brokers must maintain client funds in segregated accounts separate from their operational capital, and negative balance protection ensures retail traders cannot lose more than their deposited funds.
Enforcement & Compliance
The FCA employs a proactive supervisory model, conducting regular assessments, thematic reviews, and enforcement actions. Firms found in breach of regulations face penalties ranging from substantial fines to the revocation of their operating licences. The FCA also maintains a public Warning List of unauthorised firms to protect consumers from potential fraud.
Post-Brexit Considerations
Following the United Kingdom's departure from the European Union, the FCA licence no longer provides automatic passporting rights to EU member states. Firms wishing to serve clients across Europe must now obtain separate authorisation from the relevant EU regulators. However, the FCA remains fully aligned with international best practices and continues to be recognised as a gold-standard regulator globally.
- Financial Services Compensation Scheme (FSCS) — up to £85,000 per eligible claimant
- Mandatory segregation of client funds in trust accounts
- Negative balance protection for retail clients
- Best execution obligations under MiFID II standards
| Instrument | Retail | Professional |
|---|---|---|
| Major Forex | 1:30 | 1:500 |
| Minor Forex | 1:20 | 1:400 |
| Gold | 1:20 | 1:400 |
| Indices | 1:20 | 1:400 |
| Shares CFDs | 1:5 | 1:200 |
| Crypto | 1:2 | 1:50 |
Restricted Countries
Post-Brexit, EU passporting rights no longer apply. FCA operates independently.
Body: Financial Ombudsman Service (FOS)
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