The Financial Conduct Authority (FCA)
The Financial Conduct Authority (FCA) is the organization or body that succeeded the Financial Services Authority (FSA), which was the single regulatory agency for all financial service providers for a long period of time. In April 2013, the FSA was split into two – the Prudential Regulation Authority (PRA) in charge of the general supervision of large financial organizations like insurance companies and banks, and the aforementioned Financial Conduct Authority.
Brokers are regulated by the FCA
Forex brokers are regulated by the FCA, which seeks to protect customer and investors, by making sure that the UK financial industry is sustainable and stable, while advocating for and promoting healthy competition among service providers. To make this possible, the FCA has the power to make rules, investigate and carry out enforcement.
In the event that a broker regulated by the FCA declares bankruptcy, the dues of its clients are covered by the Financial Services Compensation Scheme. Under this scheme, Forex traders will be entitled to receive their first £30,000 in full in addition to 90% of the next £20,000. Despite that, Forex traders are entitled to a total of no more than £50,000.