If you’ve ever engaged with the financial services industry in any way, you’ve probably seen the term “FCA authorised.” But what does it mean exactly? Let’s run through what you need to know.
What does FCA authorisation refer to
FCA authorisation refers to authorisation that has been granted by the Financial Conduct Authority, or FCA. The FCA regulates the UK’s financial services firms and markets, and it exists to protect consumers, ensure competition is healthy in the British financial market, and to ensure the market operates according to the law.
As FCA compliance consultants such as www.adempi.co.uk/ will tell you, if a company is FCA authorised, it means that it has been reviewed by the regulator and confirmed as being compliant with all regulatory and legal standards.
What do FCA standards cover?
FCA standards cover areas of operation such as how the business manages risk, treats customers, prevents financial crime, and handles client money. If the business carries out a regulated financial activity, such as offering financial advice, managing investments, providing insurance, or arranging mortgages, it must apply for this authorisation and demonstrate that it meets all requirements to operate.
What else is required to be FCA authorised?
As well as demonstrating quality in its operation, a financial services firm must also show that it has the right reporting and compliance processes and framework in place. This is vital as part of compliance governance and it’s a core part of quality financial control.
In short, FCA authorisation is a mark of quality and compliance in the financial services sector.