Introduction to the FCA

Role and remit of the Financial Conduct Authority.

This lesson introduces the foundational concepts you'll need for the FSRE 1 exam. Read carefully and take notes on the key points below.

The Financial Conduct Authority (FCA) is the conduct regulator for nearly 50,000 financial services firms and financial markets in the UK. As a mortgage advisor, your day-to-day work falls under its supervision and rulebook (MCOB).

How regulation shapes your advice

Every recommendation must consider the customer's needs, demands and circumstances. The FCA's Consumer Duty introduces a higher standard, requiring firms to deliver good outcomes — not just avoid bad ones.

Key revision points

Know the role and statutory objectives of the FCA.
Understand the difference between regulated and unregulated activities.
Be able to identify principal Treating Customers Fairly outcomes.
Know the consequences of breaching FCA principles.