Financial Services Regulation
FCA/PRA regulation, authorisation, market abuse, consumer credit, and financial promotion.
Introduction
Financial services regulation in the UK is primarily governed by the Financial Services and Markets Act 2000 (FSMA). The FCA regulates conduct and consumer protection; the PRA oversees the safety and soundness of banks, insurers, and major investment firms. No person may carry on regulated activities without authorisation or exemption.
Core Principles
General Prohibition — No person may carry on a regulated activity unless authorised or exempt (s.19 FSMA). Breach is a criminal offence.
FCA Objectives — Consumer protection, market integrity, and promoting competition.
Market Abuse — Insider dealing, unlawful disclosure, and market manipulation are prohibited under UK MAR.
Financial Promotion — Communications must be approved by an authorised person or exempt (s.21 FSMA).
Senior Managers & Certification Regime — Personal accountability for senior managers in regulated firms.
Consumer Credit — Regulated by the Consumer Credit Act 1974 and supervised by the FCA.
Key Statutes
Financial Services and Markets Act 2000
Consumer Credit Act 1974
Common Scenarios
Bank mis-sells investment product
Complain to the firm, then escalate to the Financial Ombudsman Service. If the firm is insolvent, the Financial Services Compensation Scheme covers up to £85,000 per person per firm.