Regulation

The Financial Conduct Authority (FCA)

The Financial Conduct Authority (FCA) acts as the regulator in the UK. This institution monitors and regulates the activities of financial institutions. The FCA is in charge of the companies that directly finance the body itself. This group includes brokers of the world famous Forex market. The financial control and regulation department is assigned responsibilities not only to control the work of brokers, but also to ensure the complete safety of clients and protect their rights and interests.

Only if all of the above regulatory requirements are met is a broker eligible for an FCA license. Otherwise, no license is issued.

To acquire a license, you also need to have capital, the amount of which must be from 1 million pounds sterling and above. The number of traders working on the platform is also taken into account, as well as the available deposits.

The Financial Conduct Authority works with the Bank of England (BOE) and the Prudential Regulatory Authority (PRA).

Brokers under the control of FCA are required to comply with all regulated rules. Their direct responsibility is to create separate accounts for clients as well as legal entities.

The company is licensed by the FCA, therefore, it is the guarantor of safety and quality for its customers. The company creates all the necessary conditions for the work of clients and gives them certain advantages.

The Legal Entity Identifier (LEI)

The Legal Entity Identifier (LEI) is a unique global identifier for legal entities participating in financial transactions.[1] Also known as an LEI code or LEI number, its purpose is to help identify legal entities on a globally accessible database. Legal entities are organisations such as companies or government entities that participate in financial transactions. An individual person may not obtain an LEI.[2] The identifier is used in regulatory reporting to financial regulators and all financial companies and funds are required to have an LEI.

The identifier is formatted as a 20-character, alpha-numeric code based on the ISO 17442 standard developed by the International Organization for Standardization (ISO). It connects to key information that enables clear and unique identification of legal entities participating in financial transactions. Each LEI database entry contains information about an entity’s ownership and thus answers the questions of ‘who is who’ and ‘who owns whom’. Therefore the publicly available LEI data pool can be regarded as a global directory of non-individual participants in the financial market.

There are a number of LEI issuers around the world that issue and maintain the identifiers and act as primary interfaces to the global directory, these are typically financial exchanges or financial data vendors. These are accredited by the Global Legal Entity Identifier Foundation (GLEIF) to issue LEIs.