The FCA, which is short for the Financial Conduct Authority, is a regulatory body for finances. It is located in the United Kingdom, yet works separate from the government, and is financed by charging expenses to individuals from the industries in the financial sector. The organization provides services to clients, which are financial firms, and keeps up the balance of the financial market in the UK. It centres around the guidelines for providers in the financial sector. The FCA works with the Financial Policy Committee and the Prudential Regulation Authority to set administrative prerequisites for the financial sector. It leads around 58,000 organizations which contribute around £65.6 billion in yearly taxes to the economy in the UK. Because the financial market is so huge and operations can be very cumbersome, the FCA partners with other organizations such as Dutch AFM to ensure that the UK markets are kept on check. The UK organization is closely working with the Dutch authority, to protect and enhance integrity in the markets of both countries. After the UK’s announcement of leaving the EU, many financial institutions under the UK decided to operate from their various countries, thus a close partnership between the AFM and FCA is necessary for information sharing and development of the global financial market.
The organization has controlling powers over the marketing of financial items. It has the ability to review firms and individuals. Moreover, the Financial Conduct Authority can restrict financial items for as long as a year. it has the ability to caution firms to quickly withdraw or alter advertisements which are considered to be misleading. The FCA also can freeze resources of people or associations under scrutiny whether they are guilty or not. Since 2014, it has been responsible for directing the customer credit industry, assuming control over the function from the Office of Fair Trading.
In 2016, Andrew Bailey was the CEO of the Financial Conduct Authority (FCA) before he finally became governor. Bailey recently declined to receive his performance bonus to the tune of £40,000 which was due during his active days as CEO of the FCA but had deferred due to investigation of the performance of the board. He had left the Financial Conduct Authority for the Bank of England, although he still had bonuses due to be paid. He had received £68,000 of the bonus in the year 2018/2019 prior to the termination of his term as a regulator of the organization which he donated to charity. In the September 11 account annual report, it was stated that Bailey had turned down his £40,000 bonus, without any reason. This bonus was due April last year, however, due to the independent investigation into his handling of the collapse of London Capital & Finance, the payment never came through. And it was left at the discretion of the investigating committee to review if a bonus was necessary or not.
In 2020, the account annual review of FCA revealed that the interim CEO after Bailey’s departure was the highest-paid director of the organization before the arrival of the current CEO, Nikhil Rathi.
From April to March 2020, top-ranking executives at the FCA were qualified to be considered for a 35% efficiency bonus on their salary. But it was decided by the remuneration committee that there should be a delay in paying out the bonus for the executives until after a report on the failure of the LCF had been issued.
FCA staff bonuses
In the course of the year, a total of 89% of staff got a bonus and 81% of qualified workers got a salary increase. The percentage of the staff who were granted a bonus somewhere in the range of 20% and 30%, while some had a 10 to 14.9% bonus. Almost a fourth of staff got a15 and 19.9% increase in salary. The reports indicated the FCA gathered reserves of £121.4m, on 31 March 2020.
During the year, the controller said its estimates had given prompt help for over 3.4 million clients and for a huge number of organizations influenced by the COVID-19 pandemic. Other significant work included arrangements for Brexit, teaching clients on risk management. The controller had additionally improved security for clients credits, including a value top on lease-to-claim items, totalling over £224m for misconduct.