Financial Conduct Authority

• 1. The 2013 Regulatory Overhaul

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  On the 1st of April 2013, the Financial Services Act 2012 came into force. This legislation created a new regulatory framework for financial services in the United Kingdom. The Act abolished the Financial Services Authority and established the Financial Conduct Authority as its successor. It gave the Bank of England responsibility for financial stability. This move brought together macro and micro prudential regulation under one roof. A new structure emerged consisting of the Bank of England's Financial Policy Committee. The Prudential Regulation Authority also formed part of this new system. The FCA began regulating conduct by both retail and wholesale financial services firms. It operates independently of the UK Government while being financed by charging fees to members of the industry.

• 2. Investigative Powers And Asset Freezes

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  In July 2023, the FCA announced reforms aiming to curb the use of social media by 'finfluencers'. These influencers encouraged the purchasing of harmful financial products by UK consumers. Among the reforms was a ban on crypto incentives such as 'refer a friend' bonuses. The regulator required finfluencers to have clear risk warnings. Products had to include a 24-hour cooling period for first-time investors. In April 2023, the FCA took action against WealthTek Limited Liability Partnership due to serious regulatory issues. The regulator ordered WealthTek to cease operations immediately. Joint Special Administrators from BDO LLP were appointed to manage the fallout. The investigation revealed a potential shortfall of £81.4 million in client assets. The FCA obtained a worldwide order to freeze assets belonging to John Dance up to £40 million. In December 2024, the FCA charged Dance with multiple offences including fraud and money laundering. The charges allege that Dance misappropriated approximately £64 million of client funds between January 2020 and April 2023.

• 3. Supervising Banks And Mutual Societies

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  The Financial Services Act of 2012 set out a new system for regulating financial services. The goal was to protect and improve the UK's economy through fair treatment of customers. The FCA supervises banks to ensure they encourage innovation and healthy competition. They help identify potential risks early so actions can be taken to reduce them. There are more than 10,000 mutual societies in the United Kingdom. The FCA is responsible for registering new mutual societies and keeping public records. They receive annual returns from these organizations. Beginning the 31st of December 2012, independent financial advisers became legally obliged to follow Retail Distribution Review rules. To be classed as an IFA, a business must offer a broad range of retail investment products. They must give consumers unbiased advice based on comprehensive market analysis. Any firm intending to carry out cryptoasset activities within the UK must register with the FCA prior to commencing operations.

• 4. Leadership Tenures And Executive Changes

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  In February 2011, it was confirmed that Martin Wheatley would become the new head of the FCA. He was formerly chairman of Hong Kong's Securities and Futures Commission. His appointment was not put before the Treasury Select Committee for a pre-appointment hearing. Instead, the Government stated it would put him forward for a pre-commencement hearing after formal appointment. In July 2015, Wheatley resigned his post after being criticised by the chancellor George Osborne. Tracey McDermott took over from Wheatley as acting chief executive in September 2015. Andrew Bailey was appointed chief executive in January 2016. After Bailey became Governor of the Bank of England, Christopher Woolard served as interim chief executive. In June 2020, Nikhil Rathi succeeded Woolard on a permanent basis. In April 2025, Rathi was reappointed for a second five-year term until 2030. John Griffith-Jones became the non-executive chair once the FSA ceased operations in 2013. Charles Randell became chair of the FCA and PSR in April 2018. Richard Lloyd began serving as interim FCA chair from June 2022.

• 5. Parliamentary Criticism And Regulatory Failures

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  In June 2013, the Financial Conduct Authority was criticised by the Parliamentary Commission on Banking Standards. Their report titled Changing Banking for Good rebuked the Treasury Select Committee for lack of concern over mortgage interest rates. There had been calls for the resignation of chairman John Griffith-Jones due to his responsibility for auditing HBOS during the 2008 financial crisis. On the 10th of December 2014, the FCA released a report from Simon Davis regarding events of March 27 and 28 2014. The report recommended substantial improvement in procedures relating to price-sensitive information. On the 16th of December 2014, committee chair Andrew Tyrie said it looked as if the FCA had been guilty of an extraordinary blunder. A 2024 report by the All-Party Parliamentary Group on Investment Fraud labelled the regulator incompetent at best or dishonest at worst. This report found very significant shortcomings in the regulator's performance. It details tragic tales of regulatory failure and highlights a profoundly defective culture within the organization. Whistleblowers are poorly treated while challenges to the official line are met with bullying. The same group released a supplementary report in 2025 criticizing consumer protection performance.