FCA Head Office
25 The North Colonnade, London E14 5HS, UK
Switchboard: 020 7066 1000
Date: April 1st, 2013
Founding text: Financial Services Act 2012
The FCA Board is made up of executive and non-executive members.
The Board has several committees to which it delegates certain functions / powers, which are:
- Executive Committee: the Executive Committee is the primary executive decision making body of the FCA and is responsible for the operations of the organisation, including policy decisions, regulatory issues and more general operational matters.
- Executive Regulatory Issues Committee: the Executive Regulatory Issues Committee is responsible for making decisions on how to act on prominent issues escalated from divisions across the organisation, including Markets, Authorisations, Supervision and Enforcement, within the FCA’s current remit.
- Policy Steering Committee: the Policy Steering Committee's responsibilities involve maintaining oversight of all FCA policy initiatives and overseeing draft guidance for consultation. It discusses policies at an early stage and provides senior level input into their development.
- Executive Operations Committee: the Executive Operations Committee is chaired by David Godfrey and is responsible for our internal operations, including finance, people, accommodation, IT, internal risk management and business continuity.
- Executive Diversity Committee: the Executive Diversity Committee the FCA's internal and external diversity agenda, contributing to the FCA being an employer of choice and a more effective regulator. The committee also provides direction and makes decisions on diversity-related matters that affect the organisation, and champions diversity in the FCA.
The Chairman has no executive responsibility for the day-to-day running of the FCA. The key responsibilities of the Chairman are:
The Chief Executive is responsible for implementing the strategy agreed by the Board, in whose formulation he will have played a major part. He has the executive responsibility for the FCA’s business under authority delegated to him by the FCA Board.
The key responsibilities of the Chief Executive are:
All FCA staff, other than the Chairman’s immediate staff and the Company Secretary, ultimately report to the Chief Executive.
The FCA is funded entirely by the firms that it regulates, through charging them fees to carry out their financial activities. How much they pay is determined by what type of business they are and what activities they carry out.
The FCA is accountable to the Treasury – which is responsible for the UK’s financial system – and Parliament. However, we’re an independent body and we do not receive any funding from the Government.
The FCA levies two types of fee:
- application fees, payable when your firm seeks authorisation from us
- annual (periodic) fees, payable each year.
The FCA also charges fees when one firm seeks to change its authorised permissions (Variations of Permission). These are normally charged at half the appropriate application fee.
As well as the FCA, we collect fees and levies for:
- Prudential Regulation Authority (PRA)
- Financial Ombudsman Service (ombudsman service)
- Financial Services Compensation Scheme (FSCS)
- Money Advice Service (MAS) – MAS was formerly known as the Consumer Finance Education Body (CFEB).
The FCA wants consumers to be able to trust that the firms it regulates have their best interests at heart by providing them with appropriate products and services.
- Protect consumers: the FCA secures an appropriate degree of protection for consumers.
- Protect financial markets: the FCA protects and enhances the integrity of the UK financial system.
- Promote competition: the FCA promotes effective competition in the interests of consumers.
CHECKS ON THE INSTITUTION
The FCA is an independent financial regulator, accountable to the Treasury and, through it, to Parliament.
Complaints Commissioner : the FCA have set up arrangements, as required by the FSMA, for investigating complaints made against them. Complaints may be made by anyone directly affected by their actions or inaction - that is, regulated firms, individual employees of firms, listed companies, consumers etc.
Upper Tribunal (Tax and Chancery Chamber): where disagreements arise between the FCA and firms or individuals about the FCA’s regulatory decisions, the matter can be referred to the Upper Tribunal (Tax and Chancery Chamber). The Upper Tribunal is an independent judicial body established by the Tribunals, Courts and Enforcement Act 2007.
FCA Statutory Panels:
- Financial Services Consumer Panel monitors how far the FCA fulfils its statutory objectives in relation to consumers. It is independent and free to publish its views on the FCA's work and to commission research on consumers’ views.
- Smaller Business Practitioner Panel represents smaller regulated firms, who may otherwise not have a strong voice in policy making.
- Markets Practitioner Panel provides the FCA with external and independent input from the point of view of financial market participants.
- Practitioner Panel provides the FCA with external and independent input from the point of view of the industry as a whole.
History of the FCA
Before the FCA
In 1997 the Chancellor of the Exchequer announced reforms to financial services regulation in the UK. As part of those reforms the Financial Services Authority (FSA) was created from the Securities and Investments Board.
The Financial Services Authority (FSA) took over responsibility for:
After 1997 the Government gave the Financial Services Authority (FSA) additional responsibilities including:
The FSA has now become two separate regulatory authorities:
Why change the FSA to the FCA?
In the wake of the financial crisis, the Financial Services Act of 2012 set out a new system for regulating financial services in order to protect and improve the UK’s economy.
The purpose is to make sure markets work well so that consumers get a fair deal by:
The Prudential Regulation Authority (PRA)
The PRA is part of the new system for regulating financial services in the UK. The PRA works alongside FCA and is responsible for the prudential supervision and regulation of banks, building societies, credit unions, insurers and investment firms.
Read more about FCA.