In short, the answer is yes.
Knowledge is power when it comes to navigating the world of financial rules and laws. You don't have to know every clause in the English legal system, but knowing the latest updates and how they can affect you as a saver or investor is savvy.
So here’s your Regulation 101 guide to keep you in the know.
Understand the landscape
To navigate the world of financial regulations, it's important to start with the basics. Familiarise yourself with the key regulatory bodies and their roles. In the UK, there are a few to take note of:
The Financial Conduct Authority (FCA) regulates the behaviour of financial services firms and protects consumers. It aims to make sure financial markets work well.
The Prudential Regulation Authority (PRA) regulates and supervises all the major banks, building societies, credit unions, insurers and major investment firms in the UK. It promotes the safety and soundness of the firms it regulates and supervises.
The Financial Ombudsman Service settles complaints between consumers and 'live' businesses which provide financial or claims management services.
The Financial Services Compensation Scheme is there if you have a problem with a financial firm that's gone out of business. It protects consumers when authorised financial services firms fail. If the firm you’ve been dealing with has failed and can’t pay claims against it, FSCS can step in to pay compensation.
When you hear something in the news concerning these four bodies, pay attention! It may affect you in some way or the other.
Drip feed the knowledge
Ignorance is not bliss when it comes to financial regulations.
Stay informed by keeping up with financial news. You can do this by subscribing to newsletters or industry publications, and following reputable sources that provide insights on regulatory changes. By staying informed, you'll be better equipped to make informed financial decisions.
More often than not, websites like Martin Lewis moneysavingexpert.com will break down the specific ways regulations may affect you. And it’s not all bad, usually, regulations relate to increased transparency, consumer protection, and support for sustainable investing.
Apply pressure if needed
Don't be afraid to use your voice and advocate for regulatory changes that benefit the future of society.
Write to the four bodies, sign protests and participate in public consultations to promote gender diversity and work towards policy reforms.
Fempire Finance
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