Short Definition:
The FCA is the UK regulator responsible for supervising financial services firms and protecting consumers, markets and competition across the sector.
Full Explanation:
The FCA authorises and supervises banks, payment firms, e-money institutions, insurers, investment firms and consumer credit providers, setting conduct rules and taking enforcement action against firms that breach them. It currently operates alongside the Payment Systems Regulator, but that's changing: the FCA is in the process of absorbing the PSR's functions entirely, following HM Treasury's confirmation in April 2026 and the Financial Services and Markets Bill introduced to Parliament in May 2026. This consolidation is still underway, not complete — the FCA doesn't yet hold the PSR's powers over payment systems, and firms should continue treating the two as separate regulators until the transfer formally takes effect, expected by the end of 2026.
In Practice:
A UK FinTech founder applying for e-money institution authorisation deals with the FCA throughout the process — but for anything specifically about card scheme fees or Faster Payments access rules, they're currently still dealing with the PSR, not the FCA, despite the merger being under way.
Acronym:
FCA
Related Terms:
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Source Link:
https://www.fca.org.uk
Last Reviewed:
20260726
