UK Financial Services Regulation
CeMAP is built on the FCA's rulebook. This topic covers the FCA's statutory basis and objectives, the Consumer Duty, authorisation to advise on mortgages, and the consumer safety nets of the FSCS and the Financial Ombudsman Service.
The FCA and consumer protection
The Financial Conduct Authority derives its powers from the Financial Services and Markets Act 2000, as amended by the Financial Services Act 2012. Its single strategic objective is that markets function well, supported by three operational objectives: consumer protection, market integrity and effective competition. Since 31 July 2023 the Consumer Duty (Principle 12) requires firms to act to deliver good outcomes for retail customers. Advising on or arranging regulated mortgages is a regulated activity, so a firm must be FCA-authorised or an appointed representative. Consumers are protected by the FSCS (up to £85,000 for home-finance advice claims) and can escalate unresolved complaints to the Financial Ombudsman Service.