The Financial Services Authority (FSA ) regulated all the financial service providers until April 2013. Then it was divided into two organizations, the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA). The PRA is an organization in charge of the general supervision of large financial organizations and the FCA. For example, PRA regulates the operations of Banks and insurance companies.
FCA is an organization capable of legislating, investigating and carrying out enforcement. The Uk financial industries such as Forex brokers are regulated by the FCA. This in order to guarantee a sustainable and stable entity. The FCA also promotes and defends a healthy competition amongst several service providers. The main objective of the FCA is to protect the customer and the investors.
In the case of bankruptcy by an FCA regulated broker, the interest of the clients is protected. The Financial Services Compensation Scheme will qualify the client to be presented with £30,000 in a first exhibition plus 90% of the next £20,000. The total entitled compensation for the Forex traders will no more than £50,000.