FCA (Financial Conduct Authority) regulated activity refers to any activity that is regulated by the FCA under the Financial Services and Markets Act 2000. The FCA is the regulatory body in the UK responsible for regulating financial services firms and financial markets to ensure that they operate in a way that is fair, transparent, and in the best interests of consumers.
The FCA regulated activities include:
- Regulated investment activities: These include buying, selling, and managing investments, such as shares, bonds, and derivatives.
- Consumer credit activities: These include providing credit to consumers, such as loans, credit cards, and hire purchase agreements.
- Insurance activities: These include providing insurance policies and insurance intermediation, such as brokering and advising on insurance products.
- Payment services and e-money activities: These include providing payment services, such as money transfer services, and issuing electronic money.
- Mortgage activities: These include advising on and arranging mortgages, as well as providing bridging loans and other forms of secured lending.
- Fund management activities: These include managing investment funds, such as unit trusts and investment trusts.
Firms that carry out FCA regulated activities need to be authorized by the FCA and follow FCA rules and regulations. They also need to ensure that they treat their customers fairly and have appropriate systems and controls in place to manage their business risks. Failure to comply with FCA regulations can result in fines, regulatory action, and damage to the firm’s reputation.