Announcement Details

Brokers regulated by the FCA

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Inaction

In June 2013, the Parliamentary Commission on Banking Standards said, "The interest rate swap scandal has cost small businesses dearly. Many had no idea of the instrument they were being pressured to buy. This applies to embedded swaps as well as standalone products. The FSA and FCA response has been inadequate. If, as they claim, regulators do not have the power to deal with these abuses, then it is for the government and Parliament to ensure that regulators have the powers they need to enable the recovery of these egregious mis-sells."

Staff

There have also been complaints about the choice of personnel at the top of the FCA. For example, there were numerous calls for the resignation of Chairman John Griffith-Jones, who as chairman of KPMG was responsible for the HBOS audit during the 2007-2008 financial crisis.

In addition, many were unhappy about the choice of the chief executive, Martin Wheatley. This was due to his role in the Hong Kong minibond fiasco. In fact, neither appointment had a pre-appointment hearing, so it was not possible to officially reject them.

Price

There is an issue with fees. Obtaining an FCA license is relatively expensive compared to those from CySEC. As a result, many brokers seek a CySEC license to save money and meet lower licensing requirements. What does this mean for consumers? Unfortunately, this results in fewer choices for consumers who want the comprehensive protection that the FCA promises.

Finally, it has also been said that the website and regulatory requirements do not go far enough to ensure transparency and fair advertising.

FCA Responses

Despite the above, it is worth noting that the FCA has taken steps to address some of the issues mentioned above. For example, the regulator has hired three new CEOs within a year. It has also introduced new guidelines, listing rules and qualification requirements for brokers.

In addition, the regulator is taking fewer exemptions and cracking down on unauthorized firms. In fact, they issue public warnings and have press releases to alert consumers to fraudulent brokers and scams.

They have also tried to make it clear what they stand for through their mission statement. At the same time, their employees participate in training to enforce effective banking and payment account rules and transparency requirements.

So the fact that the FCA has accomplished so much after the 2008 crisis is still quite impressive, despite complaints about regulations.

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Conclusion on the FCA - One of the best regulations.

This page has given you an overview of the FCA's regulations and what they mean. An important takeaway point is that the FCA is a benchmark in terms of regulations. This is especially true when compared to other bodies, such as Cyprus' CySEC. As one of the oldest and most reputable regulatory bodies, a large number of brokers like Exness Asia are indeed pursuing an application for an FCA license.

Note that if you have any complaints, you can contact the FCA through their helpline or website. Before signing up with a new broker, also check if they are qualified and regulated by the FCA. You can do this by entering their license number through the FCA's official website.

 

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