Which firms are regulated solely by the FCA?

Firms providing independent finance advice are regulated solely by the Financial Conduct Authority (FCA) because they fall within the broader scope of retail financial services. The FCA's primary role is to oversee firms that engage in activities impacting consumers, ensuring that the advice given is suitable, fair, and in the best interest of clients. Independent financial advisors are subject to strict rules that govern their conduct and the quality of the advice they provide, which aligns with the FCA’s objectives to protect consumers and promote competition in the financial market.

In contrast, mortgage advice typically requires a firm to register with both the FCA and the Prudential Regulation Authority (PRA) due to the specific risks and regulatory requirements associated with mortgage lending. High-frequency trading firms usually come under the purview of the FCA but also have rigorous requirements due to their activities, which often involve complex financial instruments and significant market impacts. Lastly, firms managing pension funds are subject to regulation under specific pension-related legislation and are also often overseen by the Pensions Regulator in addition to the FCA. Thus, independent finance advice stands out as uniquely regulated by the FCA alone, highlighting the sector's commitment to protecting consumer interests.