The Financial Conduct Authority (FCA) is the UK's financial services regulator responsible for conduct regulation, market integrity, and consumer protection.
Core Responsibilities
| Area | Function |
|---|---|
| Firm conduct | Regulate business standards of financial services firms |
| Market infrastructure | Oversee trading venues, clearing, settlement |
| Listed companies | Enforce disclosure and transparency rules |
| Market abuse | Monitor and enforce MAR compliance |
| Consumer protection | Ensure fair treatment of customers |
Key Regulatory Tools
| Rulebook | Purpose |
|---|---|
| FCA Handbook | Comprehensive rulebook (Listing Rules, DTR, MAR) |
| Listing Rules | Premium and Standard listing requirements |
| DTR | Disclosure and transparency obligations |
| Market Watch | Surveillance and enforcement division |
UK Listing Authority Role
The FCA acts as UKLA with powers to:
- Approve listing applications to Official List
- Review and approve prospectuses
- Regulate sponsors (Premium listings)
- Monitor ongoing Listing Rules compliance
- Impose sanctions for breaches
Market Surveillance
The FCA monitors through:
- Trade surveillance: Automated detection of suspicious activity
- Announcement monitoring: Review RNS and regulatory disclosures
- Market soundings: Pre-disclosure communication oversight
- Short selling: Net short position reporting
Enforcement Powers
- Financial penalties for rule breaches
- Trading suspensions
- Prohibition orders (ban individuals from regulated activities)
- Criminal prosecution referrals
- Public censure