The Financial Conduct Authority has launched a new online tool, Firm Checker, designed to help consumers quickly verify whether a financial services company is authorised and permitted to offer the products being advertised. The tool aims to provide a simpler, clearer first line of defence for people who are unsure whether they are dealing with a genuine firm or a potential scam.
What the FCA’s Firm Checker?
Firm Checker is a streamlined consumer tool that allows users to type in the name of any financial services firm and see immediately whether it is authorised by the FCA. It also highlights the specific permissions the firm holds, so consumers can see whether it is legally allowed to offer the service being promoted. The tool also directs users to the correct contact details, which helps protect against cloned firms.
Scams linked to pensions, investments and cryptocurrency remain a significant threat. FCA research shows around 800,000 people reported losing money in the 12 months to May 2024. Many victims were approached through unsolicited social media ads, messages or phone calls.
Sheree Howard, executive director of authorisations at the FCA, said:
“Ruthless fraudsters are constantly evolving their tactics so they can steal money from innocent victims. Whether you are considering an investment, pension opportunity, loan or other financial service, use Firm Checker to confirm the firm is authorised and help fight financial crime.”
How Firm Checker is different from the FCA Register
The Financial Services Register remains the full regulatory record of every authorised firm and individual. It contains historical permissions, regulatory actions, disciplinary records and detailed technical information.
Firm Checker has a different purpose. It is designed for quick everyday checks, stripping out industry jargon so consumers can understand instantly whether the firm is authorised and what activities it can legally carry out.
Consumers are encouraged to search any firm before transferring money or sharing personal information. The tool lets people check authorisation status, confirm permissions and verify contact details. This can help stop scammers who impersonate genuine firms. Lisa Mckinnon-Lower, partner at Spencer West LLP, warned that even well-designed tools are not a complete solution:
“Even where consumers do check authorisation, cloned firms and misleading permissions could continue to create confusion and a false sense of security.”
She added that many victims are pressured in real time by sophisticated fraudsters and may struggle to navigate digital tools when under stress.
The Good Money Guide has previously highlighted the role of social media in amplifying scams. Our investigation into Meta found the company had knowingly profited from scam adverts placed on Facebook and Instagram. At the Good Money Guide London Summit, the FCA confirmed that it has no power over social media networks to take down fake financial ads, which is one of the reasons why tools like Firm Checker are increasingly important.
Richard is the founder of the Good Money Guide (formerly Good Broker Guide), one of the original investment comparison sites established in 2015. With a career spanning two decades as a broker, he brings extensive expertise and knowledge to the financial landscape.
Having worked as a broker at Investors Intelligence and a multi-asset derivatives broker at MF Global (Man Financial), Richard has acquired substantial experience in the industry. His career began as a private client stockbroker at Walker Crips and Phillip Securities (now King and Shaxson), following internships on the NYMEX oil trading floor in New York and London IPE in 2001 and 2000.
Richard’s contributions and expertise have been recognized by respected publications such as The Sunday Times, BusinessInsider, Yahoo Finance, BusinessNews.org.uk, Master Investor, Wealth Briefing, iNews, and The FT, among many others.
Under Richard’s leadership, the Good Money Guide has evolved into a valuable destination for comprehensive information and expert guidance, specialising in trading, investment, and currency exchange. His commitment to delivering high-quality insights has solidified the Good Money Guide’s standing as a well-respected resource for both customers and industry colleagues.
To contact Richard, please ask a question in our financial discussion forum.
