Forex glossary
FCA Regulation
Scope: United Kingdom
The FCA is the UK regulator for specified financial activities. Firm permissions, client-money treatment and retail CFD rules must be checked for the UK legal entity. FSCS can cover eligible claims up to 85,000 GBP per person per firm, but not ordinary investment losses or automatically every account under a brand.
Illustrative example
How does it work in practice?
On a hypothetical UK firm's account, a client loses 2,000 GBP through an adverse CFD move. FCA status and the 85,000 GBP FSCS limit do not turn that trading loss into a compensation claim.
A case to work through
A register and a protection statement
UK model: a firm appears in the register, but the service’s permissions and FSCS eligibility still require assessment.
- Match legal entity and permitted activities to the service.
- Then separately check protection eligibility conditions.
What follows? Do not extend firm status to every product under its brand.
Example boundary: FSCS does not cover ordinary market losses; protection depends on claim eligibility.
A useful distinction
FCA Regulation / Segregated accounts
Segregation separates funds; FCA supervises authorized UK financial activities.
Check your understanding
Separate firm authorization from claim eligibility.
Show the answer and explanation
Service permissions and any applicable protection
The entry alone does not settle both questions.
Entity, obligations and client protection
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Related terms
Sources and documentation
- FCA: UK retail CFD restrictions
UK product-intervention scope; it does not automatically cover other group entities.
- FSCS: investment protection
Firm, activity and claim eligibility; the investment limit is separate from deposit protection.
Document read: - FCA Handbook — CASS 7: client money
UK client-money scope and sections 7.13.12–13: separate fund identification and the bank-account counterparty. This is not a guarantee of full recovery or protection from trading losses.
Document read:
The example illustrates the mechanism. Check current account conditions and instrument specifications with the provider.