FSA Changes to FCA
The 3 main objectives of the FCA are:
• Securing an appropriate degree of protection for consumers
• Promoting efficiency and choice in the market for financial services
• Protecting and enhancing the integrity of the UK financial system
Due to ICM Capital activities, the firm is now regulated by the Financial Conduct Authority only.
Financial Conduct Authority
The key difference between the Financial Service Authority and the Financial Conduct Authority is that the FCA is a conduct authority, meaning they are not focused on all aspects of financial services, but mainly focused on conduct and treating their customers correctly. FCA will ensure conduct and markets regulation is tougher with customers being the focus point. Further focus points are policing the conduct of all firms currently regulated by the FSA to ensure consumers are protected and regulating smaller firms that do not fall under the Prudential Regulation Authority jurisdiction.
Prudential Regulation Authority
The PRA works alongside the Financial Conduct Authority (FCA) creating a corresponding regulatory structure in the UK. The PRA is a subsidiary of the Bank of England, and supervises banks, insurers and some investment firms. The PRA's objective is to promote the safety and soundness of these firms and to contribute to securing an appropriate degree of protection for policyholders.