For any consumer, to enjoy a fair deal, financial markets must be effective, fair and honest. It is what consumers pay for. Not the product or service, but honesty and effectiveness. Regulatory bodies came into existence to keep a check on the industry and all the firms under it. The sole purpose of such regulatory firms is to ensure that businesses, no matter how big or small, follow set rules and regulation.
Financial Conduct Authority (FCA) is one such firm that ensures all firms follow these guidelines and principles to run their business. From life insurance firms to foreign exchange firms; FCA regulates the conduct of over 56,000 businesses in Australia and UK. Their goal is to ensure economic growth, where everyone from a buyer to a seller can reap maximum benefit on their part.
The firm also publishes annual and monthly reports of how good or bad the financial market is doing which provides an outlook on how stable or unstable the economy is. Other than that, it also:
- Provide customers an appropriate degree of safety
- Enhance and protect the integrity of the financial system in Australia and the UK
- Boosts competition among institutions, which as a result strongly impacts the consumers spending power.
Any firm – whether starting out or already established – must look to get themselves registered with FCA at the earliest as it promotes a sense of reliability and trust. Firms, especially foreign exchange firms must get themselves affiliated with the FCA. People trust companies with an FCA authorization as it instills competency. Why do people trust firms with an FCA authorization?
It is because if things go haywire, on can rest assured that their money will return.
Furthermore, companies without an FCA authorization aren’t trustworthy. Again, how do we know so? Because if they were responsible enough, the authentication would be the first thing they get.
- If you are planning to transfer some money overseas, the first thing you must ensure is whether the firm is certified with the FCA or not. You might come across some companies that aren’t certified but it is only because their headquarters are based offshore. For instance, many foreign exchange companies are based in European countries but still operating in Australia. To check whether they are affiliated with FCA, one can check the paperwork on their website and look for certification.
- If it isn’t mentioned on their website, an individual can directly contact the Financial Conduct Authority’s help line and ask if the firm is affiliated with them or not.
- If not, there might be a possibility that the firm is operating illegally and thus must be avoided.
To help you in your search, check reviews of various foreign exchange firms like Currencies Direct (https://www.icomparefx.com/foreign-currencies-direct-reviews/ ) are FCA authorized. The company purchases currency at wholesale rates and thus, pass on more saving to its customers. Sign up is fairly easy. One must answer a few verification questions and be ready to have their account set and transfer ready.