FCA launches Firm Checker
The Financial Conduct Authority has launched Firm Checker, a new information service designed to support consumers and reduce fraud in pensions, investments and crypto assets. The tool lives on the FCA website and helps users confirm whether a financial services business is authorised. It presents this information in a simplified format through a green or red status bar. Authorised firms appear with key details such as website, address and phone number to help consumers confirm that they are dealing with the right organisation. It also lists the specific activities a firm has permission to conduct.
Firm Checker responds to longstanding criticism that the FCA register is difficult for the public to use. Although the full register remains important for checks on firms that are no longer operating, the new tool aims to help users make quicker and more confident decisions. Its data draws from existing FCA records. The regulator plans further improvements to both resources as part of its wider fraud prevention work.
Partner Lisa McKinnon-Lower shared her view on the launch.
“The launch of the Firm Checker sounds to be an extremely positive and necessary step in strengthening consumer protection against fraud. In practice, once funds have been transferred, the legal and practical avenues for recovery are all too limited. I regularly advise clients who have fallen victim to professional-looking schemes only to find that tracing assets is extremely difficult and the cost of pursuing legal action is prohibitive. It is often difficult to encourage engagement by prosecution authorities for the same reason. This means that by the time advice is sought, the opportunities for meaningful intervention have often passed.
Whilst the full details of the tool’s functionality are not yet clear, my primary concern is that those most frequently victimised by these scams are not always equipped to navigate digital verification systems, particularly when they are being pressured in real time by sophisticated fraudsters. Even where consumers do check authorisation, cloned firms and misleading permissions could continue to create confusion and a false sense of security.
If designed well and used correctly, this tool could be extremely useful at tackling fraud, perhaps beyond the scope currently envisaged, I look forward to seeing how this initiative progresses.”
Fraud continues to affect large numbers of consumers. Recent FCA survey data indicates that about 800,000 people may have experienced pension, investment or crypto fraud in the twelve months to May 2024, while many cases go unreported. Firm Checker represents one part of the regulator’s attempt to strengthen protections and improve public awareness of authorised services.
Lisa appeared in Law360, Grip., Today’s Wills & Probate, FinExtra, and Finance Magnates.
