This article LTG
GoldRock introduces the British Financial Market Conduct Supervision Bureau ~
The British Financial Services Authority (FSA) has been replaced by two new regulatory agencies since 2013. They are the Financial BeanCial Bureau
Conduct Authority, FCA) and prudential regulatory bureau (Prudential
Regulation Authority, PRA).Among them, the supervision rights of the brokers will be transferred from the FSA to FCA.
FCA is the central regulatory agency of the British financial investment service industry and is responsible for regulatory banks, insurance and investment business.FCA is currently the world's most complete supervision and the most legal enforcement financial regulatory agency, and has become a model for learning from financial regulatory agencies in various countries. Its authority has been highly recognized by investors.
FCA is an independent organization that does not belong to the Bank of England.From April 1, 2013, FCA's responsibility is to promote effective competition, ensure the normal operation of the relevant market, and supervise the behavior of all financial service companies.These include preventing market abuse and helping consumers get fair trading opportunities.At the same time, the FCA is also responsible for the prudent supervision of financial service companies that are not subject to PRA supervision, such as asset management companies and independent financial advisers.
FCA responsibilities scope
Britain is currently the most complete and perfect country in the world's financial services, and its authorization regulations are very strict.Only some companies can be authorized by FCA.The benefits of FCA supervision:
1. FCA's authorization standards are very strict. The authorized unit must have funds that only use to support the supervision business, and regularly report to the FCA every month.
2. FCA has the right to check all company records and customer accounts at any time under certain circumstances to ensure that the company complies with regulations.
3. The regulatory agency has a full -time compliance reviewer independent of management.
4. FCA requires the authorized unit to treat customers fairly to maintain the system and operation.At the same time, it is necessary to prove to FCA to treat each customer equally.
5. The authorized unit must prove to the FCA that the company has enough mobile funds to pay customer deposits and potential company expenditures.
6. External auditors must independently review the account and customer fund process and report directly to the FCA.
FCA fund guarantee
According to the requirements of FCA's customer fund use criteria, the brokers need to separate all funds of the customer daily and store them in the banks licensed by the FCA.Brokers hold these funds only as trustees.
FCA compensation plan
The Financial Services Compensation Plan (FSCS) is the final request of the financial service company's customers regulated by the British Financial Market Executive Bureau (FCA).This means that if the British Financial Market Candidate Administration has determined that the authorized financial service company is unable to pay its debt, the financial service compensation plan will compensate for compensation based on the investment industry protection plan.
