Check a financial firm is authorised before you invest

The short version

• Before you pay, check the firm on the Financial Conduct Authority's Firm Checker and make sure it has permission to offer what it's selling.
• Contact the firm only through the details the Firm Checker lists.
• If a firm isn't authorised, you can't complain to the Financial Ombudsman Service or get compensation if it goes out of business.
• If you've already paid, contact your bank straight away, then report the scam.

What the law says

This guide is for anyone in the UK who's asked to invest in, or pay for, a financial product or service.

A firm must be authorised by the Financial Conduct Authority (FCA) to offer regulated financial products and services in the UK, unless it's exempt. This is set out in section 19 of the Financial Services and Markets Act 2000.

Under section 21 of the same Act, a business generally can't advertise an investment unless it's authorised or an authorised firm has approved the ad.

If you deal with a firm that isn't authorised, you can't take a complaint to the Financial Ombudsman Service, a free complaints service set up by Parliament. You also can't get compensation from the Financial Services Compensation Scheme (FSCS) if the firm goes out of business.

Most crypto activity isn't regulated in the UK. Even if a crypto firm is registered with the FCA, you generally can't use the Financial Ombudsman Service or the FSCS.

How to check a firm

1. Search for the firm on the FCA Firm Checker and check it has permission for the product or service you want.
2. Check that the firm's FCA reference number and contact details match the ones the Firm Checker shows.
3. Contact the firm using the details on the Firm Checker, not the ones in an ad, email or website. Some scammers pretend to be real authorised firms.
4. Search the FCA Warning List, which names firms the FCA is concerned are working without its permission.

A firm that isn't on the Warning List might still be a scam. If you can't find the firm or its details don't match, ask the FCA to check the firm before you pay.

If you've already paid

Contact your bank straight away, using the number on your card or statements. Then report the scam to Report Fraud if you live in England, Wales or Northern Ireland. If you live in Scotland, report it to Police Scotland on 101.

The Payment Systems Regulator's refund rules cover bank transfers from one UK account to another made on or after 7 October 2024, if a scammer tricked you into making them. They cover individuals, very small businesses and charities.

The rules don't cover money you moved to an account you control, such as a crypto exchange account in your name, even if a scammer then took it.

If these rules apply to you:

• your bank has to refund you up to £85,000
• your bank can take off up to £100 first, unless you're vulnerable
• you won't get a refund if you were involved in the fraud
• unless you're vulnerable, you won't get one if you were 'grossly negligent'
• you need to tell your bank as soon as possible, and within 13 months of the last payment you made to the scammer

Be wary of anyone who offers to get your money back for a fee. This might be a 'recovery room' scam.

If you see a scam ad

If it was a paid ad, such as a sponsored post or search ad, you can report it to the Advertising Standards Authority.

What you can do

1. Check the firm and use only the contact details the Firm Checker lists.
2. If you've paid, contact your bank straight away and report the scam.
3. Report the firm to the FCA, even if you didn't lose money.
4. If your bank turns down your refund claim, complain to the bank, then to the Financial Ombudsman Service.

The FCA says it can't help you get your money back, but it looks into every report it gets.

Contact the Citizens Advice consumer service if you're not sure what to do next. In Scotland, get consumer help from Advice Direct Scotland. In Northern Ireland, contact Consumerline.