Quick answer: The FCA (Financial Conduct Authority) decides which firms are allowed to give financial advice in the UK and sets the rules they must follow. If a firm is FCA-authorised, it has to treat you fairly, explain its charges, and give advice that suits you. If something goes wrong, you can complain to the free Financial Ombudsman Service, and you may be able to claim compensation. You can check any firm or adviser on the FCA Register for free, right here on this site.
What is the FCA?
The Financial Conduct Authority is the organisation that oversees financial firms in the UK. That includes pension advisers, pension providers, banks, building societies, insurers, investment firms and many lenders.
It started in 2013, taking over from the old Financial Services Authority. It works independently of the government, but answers to the Treasury and to Parliament. It is paid for by fees from the firms it oversees, not by your taxes.
Think of it as the referee for money matters. It decides who is allowed onto the pitch, sets the rules of the game, and can send firms off when they break them.
What is the FCA for?
The FCA has three main jobs:
- Protecting people like you from firms that are dishonest, careless or unfair.
- Keeping the financial system honest, so people can trust it.
- Making sure firms compete fairly, so you get good products at fair prices.
To do this, it can fine firms, make them pay back customers, stop them doing business, and take people to court.
What does “FCA-authorised” mean for you?
A firm can only give regulated financial advice, including pension advice, if the FCA has given it permission. That permission comes with rules. An authorised adviser must:
- Be properly qualified and keep their knowledge up to date
- Find out about your circumstances before recommending anything
- Only recommend something that suits you
- Tell you clearly what they charge, before you agree to go ahead
- Put things in writing so you can check what was recommended and why
- Have a proper complaints process
Since 2023, the FCA’s Consumer Duty has gone further. Firms must actively aim for good outcomes for their customers. That means clear information you can understand, products and services that offer fair value, and support when you need it.
Since 2013, advisers have not been allowed to take commission from pension or investment providers for advice. They agree a fee with you instead, so their recommendation should not depend on which provider pays them. What pension advice costs
How to check a firm or adviser
It takes a few seconds and costs nothing. Do it before you share personal details or sign anything. You can check a firm right here:
Or follow these steps:
- Ask for their firm reference number. Every authorised firm has one. It is usually printed at the bottom of their website and letters.
- Look them up on the FCA Register. Search by firm name, reference number or the adviser’s own name.
- Check what they are allowed to do. The Register lists each firm’s permissions. For pension advice, look for “advising on pension transfers and pension opt-outs” if you are thinking of moving a final salary pension.
- Check the contact details match. Use the phone number and website shown on the Register, not the ones in an email or advert. Fraudsters sometimes copy a real firm’s name and number.
- Know the warning signs. Our guide to spotting a pension scam explains what to look out for, and how to check the FCA’s Warning List of firms it knows are operating without permission.
When the law says you must take advice
For most pension decisions, advice is your choice, not a legal requirement. The main exception is a final salary (defined benefit) pension. If its transfer value is more than £30,000, you must take advice from an FCA-authorised adviser with the right permission before you can transfer it.
Whatever your situation, free and impartial guidance is available from the government’s MoneyHelper service, and from Pension Wise if you are aged 50 or over. Guidance explains your options. Advice recommends what you should do.
If something goes wrong
Using an FCA-authorised firm gives you two important protections that you would not have with an unregulated one.
1. The Financial Ombudsman Service
If you are unhappy with an authorised firm, complain to the firm first. It has up to eight weeks to give you a final answer. If you are still unhappy, or it hasn’t replied, you can take your complaint to the Financial Ombudsman Service. It is free for you to use. If it agrees with you, it can tell the firm to put things right and pay compensation. For complaints referred to it from 1 April 2026 about things that happened from 1 April 2019, it can award up to £455,000.
2. The Financial Services Compensation Scheme (FSCS)
If an authorised firm closes down and can’t pay what it owes you, the FSCS may step in. For bad pension advice, it can pay up to £85,000 per person, per firm. If a pension provider itself fails, cover is usually 100% of what you are owed, although some types of pension, such as SIPPs, have different limits.
These protections generally don’t apply if you deal with a firm that isn’t authorised. That is one of the main reasons to check the Register first.
Spotting a pension scam
Pension savings are a target for fraudsters. The FCA and The Pensions Regulator warn people to watch for these signs:
- A call, text or email out of the blue about your pension. Cold calling about pensions has been banned since 2019.
- Offers of a “free pension review” from someone you have never heard of
- Promises of high or guaranteed returns, or “once in a lifetime” investments
- Pressure to decide quickly, or to sign before you have read everything
- Offers to let you take money out of your pension before age 55 (rising to 57 in April 2028), other than in rare cases such as serious ill health
- A firm that isn’t on the FCA Register, or whose details don’t match it
If you are unsure, stop, and check the firm on the FCA Register. If you think you have been targeted, you can report it to the FCA, and to Action Fraud on 0300 123 2040. More on pension scams and how to protect yourself
Where Pensions Advice UK fits in
Pensions Advice UK is not authorised by the FCA, and we do not give financial advice. We are an introducer. When you make an enquiry, we may introduce you to an FCA-authorised financial adviser.
The adviser gives the advice, not us. They will explain their services and fees before you decide whether to go ahead, and all the protections on this page apply to them. You are always free to check them on the FCA Register yourself, and we encourage you to.
Frequently asked questions
What does FCA stand for?
Financial Conduct Authority. It is the UK body that decides which financial firms can operate and sets the rules they must follow.
How do I know if a pension adviser is FCA-authorised?
Search for the firm or adviser on the FCA Register at register.fca.org.uk. It is free. Check that the firm’s permissions include the advice you need, and that its phone number and website match the ones you were given.
Is the FCA part of the government?
No. It is independent, but it answers to the Treasury and to Parliament. It is funded by fees paid by the firms it regulates.
Can the FCA sort out my complaint?
The FCA doesn’t settle individual complaints. Complain to the firm first. If you aren’t happy with its answer after eight weeks, the free Financial Ombudsman Service can look at it and, if it agrees with you, order the firm to put things right.
What happens if my adviser’s firm goes bust?
If the firm was authorised and owes you compensation for bad pension advice, the Financial Services Compensation Scheme may pay up to £85,000 per person, per firm.
Is Pensions Advice UK regulated by the FCA?
No. Pensions Advice UK is not authorised by the FCA and does not give advice. We are an introducer. Any advice comes from the FCA-authorised firm we introduce you to, and you can check that firm on the FCA Register.
More on pension advice
- Check a firm or adviser on the FCA Register
- The Financial Ombudsman Service explained
- FSCS compensation explained
- How to spot a pension scam
- Speak to an FCA-authorised pension adviser
- Pension advice charges: what you should expect to pay
- Final salary and defined benefit pension advice
- Pension questions answered
- Who are Pensions Advice UK?