EXNESS UNDER FCA REGULATIONS
The role of regulations to Exness
Foreign exchanges, or forex, operate constantly everyday all over the world through over-the-counter markets. The international characteristic of this border-less market leads to uninterrupted access. For instance, a French trader can trade in US dollars and euros (USDEUR) through a broker based in the US in spite of the geographical barriers. Analytical trading in the retail forex market is growing stronger and more popular everyday. As a consequence, there could be a chance that mediators (like banks or brokers) are involved in financial violations, scams, outrageous prices, secret fees, high-risk exposure offered through high-leverage levels, or other crimes. Trading on the Internet and mobile apps allows things to go smoothly, but also brings dangers like unrecognized firms who run sites that can close unexpectedly and sneak away with traders’ money. Consequently, it is necessary to have regulations that are set by qualified authorities to make sure that those violations or scams are prevented. The aims of regulations should be protecting independent traders and guaranteeing fair operations to secure clients’ interests. Traders from anywhere obviously want security and safety. Exness understands this idea, so they have acquired the certificate from FCA.
So what is FCA and how secured is it?
FCA and Exness
The Financial Conduct Authority, or more referred to as FCA, is the financial regulatory agency in the United Kingdom, but it operates independently of the UK government. The financial income of FCA is from the fees it charged members of the financial industry. There are a great deal of financial firms providing services to consumers having obtained registration from FCA. FCA is also responsible for maintaining the integrity of the financial markets in the United Kingdom.
The Financial Services Act 2012 received royal assent on 19 December 2012 and it came into force on 1 April 2013. This Act created a new regulatory framework for financial services and set aside the Financial Services Authority. Particularly, this Act made the Bank of England in charge of financial stability, bringing together macro and micro economical regulation, and established a new regulatory structure including the Bank of England's Financial Policy Committee, the Prudential Regulation Authority, and the Financial Conduct Authority.
FCA has the following powers
The authority has special powers, consisting of the power to regulate conduct related to the marketing of financial products. It is able to specify minimum standards and to place requirements on products. It also has the power to investigate financial organizations and individuals.
- In addition, the FCA has the power to ban financial products for up to a year while considering an indefinite ban. It also has the power to instruct companies to immediately retract or modify promotions which it considers misleading, and to publish such decisions.
- The authority is responsible for regulating the consumer credit industry from 1 April 2014, taking over the role from the Office of Fair Trading.