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Financial Conduct Authority - Coggle Diagram
Financial Conduct Authority
Inherited majority of the FSA's roles and functions and adopted the legal corporate identity of the FSA
Regulates the financial services industry in the UK.
Aims to:
protect consumers,
ensure the industry remains stable
promote competition between financial services providers
The FCA
Is responsible for the conduct of business regulation of all firms, including those regulated for prudential matters by the PRA.
Is responsible for the prudential regulation of firms not regulated by the PRA. These firms are sometimes referred to as FCA-only firms or FCA-authorised firms.
Inherited the FSA's market conduct regulatory functions, with the exception of responsibility for systemically important infrastructure which was transferred to the BoE.
Three operational objectives
To secure an appropriate degree of protection for consumers,
o To protect and enhance the integrity of the UK financial system and
o To promote effective competition in the interests of consumers.
The Financial Services Act 2012 gave the FCA additional powers to those that were held by the FSA, including
Make temporary product intervention rules,
allowing it to block an imminent product launch
or to stop an existing product,
· Require firms to withdraw or amend misleading
financial promotions with immediate effect,
· Publish details of the start of enforcement
proceedings against a firm for rule breaches
or compliance failings. The PRA also has this power,
· Impose requirements on certain unregulated parent
undertakings that exert influence over authorised persons.
The PRA and the BoE also have this power.
Supervision
Work is carried out on issues and products, undertaking fast, intensive campaigns on sectors of the market or products that are putting or may put consumers at risk
Firms are placed into four different categories
FCA regularly assesses firms’ conduct
responds to events as they arise
Enforcement
The FCA ensures that
Take appropriate steps to protect themselves against fraud,
· Put in place systems and controls to mitigate financial crime risk effectively,
· Can detect and prevent money laundering,
· Understand that we will take action against them if they use corrupt or unethical methods.