Financial Conduct Authority (FCA)
British conduct regulator for financial firms, distinct from the prudential supervisor PRA.
The Financial Conduct Authority is the British authority responsible for regulating the conduct of financial services firms, including insurers and intermediaries. The United Kingdom applies a so-called twin peaks model where supervision is shared between two authorities: the FCA for conduct, consumer protection and market integrity, and the Prudential Regulation Authority, attached to the Bank of England, for the solvency of significant firms. The FCA ensures that products are sold fairly, that customers are properly informed and treated, and that business practices do not harm consumers. It has introduced an enhanced consumer duty, marking heightened requirements on the fairness of products and prices. For the London market, a global hub of specialty insurance and reinsurance, the FCA frames distribution and market practices, while solvency falls to the PRA, this split structuring British insurance regulation.
The FCA can sanction a British insurer for unfair sales practices or pricing deemed harmful to consumers, independently of its solvency: since January 1, 2022, a motor or home insurer may no longer quote a renewing customer a higher price than a new customer.
FCA, Financial Conduct Authority, UK conduct regulator
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