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Tuesday, February 25, 2014

Financial Conduct Authority

U.K. Financial Conduct Authority
London's Business District is regulated in part by the FCA
FCA (Financial Conduct Authority) is a quite famous regulatory body stationed in the United Kingdom. It has also presented an opportunity for centralising the financials of the UK-based organisations. On operations grounds, it is an independent body which is working as part of United Kingdom’s government and drives the funds with charging some fees to the member of various financial services industries. Apart from that, the body is also responsible for regulating conducts of numerous wholesale and retail services firms within the United Kingdom.

Considering the very functionalities of firm, it has been powered by the FSMA act which gives the FCA four statuary based objectives to pursue so as to enhance the functionality of the UK based financial markets and firms. The four objectives include, market confidence, financial stability, mitigation of financial crimes and most importantly consumer protection. Objective of market confidence ensures that the strengthening of bond between the financial institutions and UK government. It also seeks to facilitate better understanding of UK financial systems and its related statures. Financial stability is also another core function which serves as a proponent for enhancing the sense of protection for investments in UK markets. Moreover, it also serves to facilitate the structural stability of UK financial system. Consumer protection is another core concern which is quite commonly raised before subsequent investments. Hence, security of consumer information is one of the core concerns which are addressed on the very same FCA Compliance and Authorisation platform. Furthermore, mitigation of financial crime risks is also quite crucial for enhancing the confidence of consumers and establishment of ties between government and financial firms.

In order to meet the very requirement of compliance on every scale, it was required to introduce compliance consultants as a core player in market. Compliance consultancy firms surely play a vital role in sustainability of FCA Compliance and for providing implementation of these rules at ease.  These firms offer a great deal of services to their clients including advice of overall process, research of markets, supervising trading activities, assessment of EU directives, monitoring of compliance, and training of personnel to name a few. These audits are carried out as per the nature of package taken by the industry. However, on successful completion of this audit, the company has been provided with a detailed analysis regarding the findings, propped by a number of corrective measures which can induce a sense of financial viability in the fiercely competitive UK market.

FCA authorization and regulatory compliance also seeks to monitor these compliance consultancy firms to provide top-notch quality of financial services to companies willing to invest in UK-based markets. Keeping an eagle’s eye over the situation is also one of the crucial roles of company. FCA does not authorise to use their resources as per capital standards. It makes the firms to report FCA on regular basis to promote transparency of funds. Also, maintenance of regulatory compliance is another core aspect of FCA operations, it grants the FCA due rights to visit firms without any notice (and even on ad-hoc basis) for checking the records as well as clients information. This enhances the FCA’s perspective in promoting compliance policy all across the board. Treatment with client is another aspect which does not go un-noticed from FCA’s officials.  

>All in all, FCA is a financial monitoring hub for evaluating the organisations firms’ performance in providing services to their clients. The organisation has also facilitated ample grounds for creating a financially viable environment for economical growth.

Image license: Colin Smith; CC BY-S.A. 2.0