Ace the FCA UK Regulation Challenge 2025 – Boost Your Financial Future!

Question: 1 / 400

Which type of business would likely be subject to the Financial Services Compensation Scheme?

A real estate firm

A food retail company

A financial advisory firm

A financial advisory firm is likely to be subject to the Financial Services Compensation Scheme (FSCS) because it provides regulated financial services, which include advising clients on investments and managing their finances. The FSCS is designed to protect consumers by compensating them if a financial services firm fails, ensuring that clients can recover their funds or receive a financial remedy when services are not delivered as promised. Businesses in sectors like real estate, food retail, or software development typically do not fall under the regulatory framework governed by the FCA, and therefore, they do not benefit from the FSCS protection. This makes the financial advisory firm a clear fit for the FSCS's coverage.

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A software development company

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