What you need to know about FCA registration

FCA registration

The United Kingdom has for a long time taken a leadership position in financial services. In 2018, the U.K. was the seventh-largest in the Organization for Economic Co-operation and Development (OECD). The period between 2018 to 2019 saw the U.K. register a more than double increase in Fintech investment. 

As more startups and small businesses take part in the financial sector, it becomes apparent the need for FCA regulation to be applied. These help ensure there is proper governance, lest there be fraudulent cases.

The Financial Conduct Authority (FCA) was created for this purpose. Ever since its introduction, it has raised a series of important questions about the FCA treating customers fairly, why businesses need it, and how the FCA helps keep risk levels to a minimum. 

What is the FCA?

The FCA is the regulatory body for financial services in the United Kingdom and takes responsibility for how the U.K. financial markets function. The organization operates with the mandate of ensuring there are honest and fair markets for businesses, individuals, and the economy as a whole. It achieves this through the protection of financial markets, protection of consumers, and promotion of competition. 

The need for FCA

Obtaining an FCA register is something that any firm participating in the financial markets cannot afford to ignore. The FCA was created from the understanding that any sector that handles financial data and assets possesses a certain level of risk. 

While operating in the financial arena, the FCA regulates any organization or business that handles financial data, assets, and people’s money to ensure clients and customers. Furthermore, it ascertains that everything is done with honesty and fairness.

When evaluating whether or not you need to register with the FCA, you need to start by understanding the nature of your business. Keep in mind that the U.K. financial market operates at different levels. There are software companies that offer online payment gateways, independent players who provide financial advice, and large firms that handle millions of pounds in assets. Each of these businesses will need to handle regulatory requirements from varying perspectives. The FCA ensures that there is clarity on the regulatory framework. 

What financial activities are regulated?

The different financial activities regulated by the FCA include:

  • Asset safekeeping and administration
  • Accepting deposits 
  • Handling investments (selling and buying)
  • Handling insurance contracts 
  • Lloyd’s syndicates
  • Handling loan stock, bonds, and debentures 
  • Collective investment schemes
  • Web-based investment transactions 

Safeguarding the U.K. financial services industry 

The FCA does a tremendously good job of setting leading financial regulatory standards. Businesses that are regulated and monitored by the FCA can easily be trusted by the public. People will transact with you confidently because they know you will truthfully handle their money and assets. 

The law requires that any business which conducts activities specified by the Payment Services Regulations 2017 or the Regulated Activities Order 2001 get FCA authorization. Failure to register when your business fits specified profiles attracts penalties, besides negatively impacting your brand. 

Most businesses are aware of the rules, but startups have a hard time coping. That is where Mema Consultants come into play. As a financial consulting company, we offer a wide range of services to regulated firms, including advising on FCA registration.

Also Read: What Happens When You Have Peripheral Artery Disease.

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