Which organization is responsible for regulating financial firms in the UK?

The Financial Conduct Authority (FCA) is responsible for regulating financial firms in the UK. Its primary role is to ensure that financial markets operate well, protecting consumers and enhancing the integrity of the UK financial system. The FCA’s regulation covers a wide array of firms and activities, ensuring that they adhere to standards designed to foster competition and safeguard the interests of consumers.

The FCA has the authority to establish rules, supervise firms, enforce compliance, and take action against entities that breach conduct requirements. This creates a system where consumers have confidence in the financial services they receive and encourages good practice within the sector.

While the Prudential Regulation Authority (PRA) oversees the stability of financial firms, particularly banks and insurers, it primarily focuses on the prudential side of regulation. The Bank of England plays a broader role in monetary policy and overall economic stability rather than directly regulating financial firms. The Financial Ombudsman Service, on the other hand, provides an independent dispute resolution service for consumers who have complaints against financial service providers, but it does not have regulatory authority over firms.