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The Financial Conduct Authority

 

The FCA, which stands for Financial Conduct Authroity, was previously a part of the FSA. The FSA (Financial Services Authority) was a UK self-funded authority, founded under the Financial Services and Markets Act 2000 (FSMA). It ceased to exist in 2012, and split into two authorities, one is the PRA and the second is is the FCA (all detailed in our money transfer history timeline).

The FCA is the regulatory body that authorises money transfer firms to transfer money internationally and repatriate it. Every company that wishes to engage in the transfer of funds across borders, needs to be registered under Payment Services Regulations 2009, supervised by the FCA.

he authority is governed by a board  appointed  by the treasury, and supervises the activity of over 50,000 UK-facing financial business firms.

Official website: https://www.the-fca.org.uk/ (moved from fca.org.uk after a recent redesign in mid-June 2016).

Offices: The Financial Conduct Authority office headquarters is at: 25 The North Colonnade, London E14 5HS. Here’s a unique photograph we took of the impressive building.

TheFCAOffices

View Of The FCA Offices in Canary Wharf

 

Core responsibilities

  • Day to day supervision
  • Investigating through customer complaints
  • Regulation committees
  • Issuing warnings against unsafe providers
  • Escalating issues to Upper Tribunal (Tax and Chancery Chamber) and the Commissioner of Complaints
  • Anti Money Laundering
  • Investigating client complaints (the Financial Ombusdman Services do that).

FCA Approved Payment Provider Reviews

Company     Companies House #     PSD Status
World First Limited UK05022388Authorised Payment Institution
Currencies Direct Ltd03041197Authorised Payment Institution
TTT Moneycorp Ltd00738837Authorised Payment Institution
Currency Solutions Limited4864491Authorised Payment Institution
Currency Index Ltd06586857Authorised Payment Institution
Transferwise Ltd07209813Authorised Payment Institution
Tor Currency Exchange Limited05193147Authorised Payment Institution
UKForex Limited04631395Authorised Payment Institution
Axia Ltd05762951Authorised Payment Institution
FairFX PLC05539698Authorised Payment Institution
Azimo Ltd07895399Authorised Electronic Money Institution
CurrencyFair Ltd(registered in Ireland)Regulated by Central Irish Bank
Afex Foreign Exchange Limited04848033Authorised Payment Institution
Halo Financial Limited5155787Authorised Payment Institution
Foreign Currency Direct PLC5082565Authorised Payment Institution
VFX Financial PLC 06589361Authorised Payment Institution
Ebury Partners UK Limited07088713Authorised Payment Institution
Global Currency Exchange Network Ltd04675786Authorised Payment Institution
Pure FX Limited05990857Authorised Payment Institution
Rational Foreign Exchange Limited05385999Authorised Payment Institution
HiFX Europe Limited Plc3517451Authorised Payment Institution
Western Union Payment Services UK Limited06908983Authorised Payment Institution
MoneyGram International Limited03287157Authorised Payment Institution
WorldRemit Ltd7110878Authorised Payment Institution
Kantox Limited7657495Authorised Payment Institution
Travelex Consumer Payments Limited7650665Authorised Payment Institution
 FC Exchange Limited 900205 Authorised Electronic Money Institution
CurrencyUK Limited504592Authorised Payment Institution
Global Reach Partners Limited04344764Authorised Payment Institution
Key Currency Limited9603083Authorised Payment Institution
Lebara Money09753115Authorised Payment Institution


Can’t Decide? View our Best Money Transfer Comparison on our Homepage.


 

Why Stick To FCA-Approved Firms?

In simple words, if you want to have the same level of confidence and security when issuing overseas payment via an commercial provider, as you do with banks, that commercial  company should undergo scrutinization of a regulatory body. Someone has to make sure things are happening as they should be.

Think of a money transfer company as a mediator. The way it works is that you send them money domestically in your own currency, and they make the exchange and move it forward. What would happen if that money you sent them will be transferred directly into their bank account, with no designated bank account for client transactions (“ring-fenced”)? You absolutely don’t want that to happen. You want any financial institution to have separated client accounts, as well as securities in place.

You also don’t want to be a victim of fraud.  Rip-off companies are common.

The FCA processes complaints, issues fines, and revokes licenses, if necessary, i.e. too many complaints, business misconduct, failing to pass their tests etc.

They make sure it is clear to for every UK customer which company is approved by them.

For more information view the FCA Official Website.


Foreign Exchange Rigging Fines

As detailed on our bank scandals page, the FCA had a prominent role in cleaning up the UK financial system in 2014 when they issued a great deal of fines to banks for their business fx practices and rigging the LIBOR rate.

The FCA announced fines totalling £1.1 billion ($1.7 billion) for five prominent banks for ineffective controls among foreign exchange traders between January 1, 2008 and October 15, 2013.

The five banks facing fines for “failing to control business practises” in their spot FX trading operations were: Citibank (£226 million), HSBC (£216 million), JP Morgan (£222 million), Royal Bank of Scotland (RBS) £217 million) and UBS (£233 million).

One of the primary benchmarks that the FX traders attempted to manipulate was the World Markets/Reuters Closing Spot Rates (WM/R Rates). Regulators discovered that banks went to great lengths to collude in this core benchmark used to price cross-currency swaps, foreign exchange swaps, spot transactions, forwards, options, futures and other financial derivative instruments.

The FCA also collaborated with the US-based NFA and SEC to levy over $10 billion in fines back in 2014. Within days, other regulatory agencies weighed in with additional levies based on similar findings and discoveries of market abuse and collusion.

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Are We FCA-Approved?

MoneyTransferComparison.com is by no means regulated, authorised by, or registered with the FCA. As we do not provide personal financial advice, nor process any payments what-so-ever from our visitors, we don’t fit the criteria of the companies that should undergo their scrutinization. Nevertheless we try to follow guidelines set out by the FCA for different financial sectors.

We offer a free service of investigating FX cases.


Does the Financial Ombudsman protect corporate clients?

The answer to that is unfortunately no when the turnover is above GBP 2m annually. Although many of the fx brokerages mainly deal with corporate clients through their corporate fx department, these clients cannot file a complaint as private clients do via the Financial Ombudsman. These corporate clients have to resort to a civil court to handle their complaints.

 


Bank Regulation

The FCA also plays a role in the regulation of banks, alongside commercial companies handling people’s money. Banks, which were traditionally overseen by the FSA until it was split in 2012, are now inspected by 3 regulatory bodies: HMRC, PRA and the FCA.

Each one of the regulators is responsible for different things. The FCA’s specific roles with banks is to make sure competitiveness is maintained, and making sure the banks day-to-day activity is compliant with the legal requirements, such as capital requirements, credit requirements, exposure requirements and transparency requirements.

There are plenty of banks that have received hefty fines from the FCA, and you can read about it more in depth on our UK bank regulation and famous scandals page.

 

3 comments

  1. compare

    Page updated and upgraded. Looking forward for your feedback on how to improve it further.

    Posted on December 1, 2014
  2. liran kalderon

    Hi I need to make periodic transfers of dollars from my American account in the US to my account in Israel.
    Is this something you do?
    thanks
    liran

    Posted on August 20, 2017
    • Compare - MTC Admin

      None of the companies we cover deals with same currency transfers. If you require Dollar to ILS you can inquire with Currencies Direct, but if it’s USD to USD, just do it via the the bank.

      Posted on August 20, 2017

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