What is a 'financial service' in FCA terms?

A 'financial service' in the context of the FCA refers to a broad range of activities that manage, invest, or handle financial resources. This includes providing investment advice, managing investments, facilitating payments, and various other financial operations designed to support both individual consumers and businesses. The FCA regulates these services to ensure market integrity and protect consumers.

Providing investment advice and managing investments are quintessential examples of financial services because they directly involve the handling of other people's money and advising them on how best to grow or manage that wealth. This definition encompasses a wide array of functions within the financial sector, demonstrating the FCA's focus on ensuring that consumers have access to well-regulated, competent financial advice and that their interests are adequately safeguarded.

Other choices reflect narrower or specific areas within the financial services sector but do not encompass the full range of activities defined as financial services under FCA regulations. For instance, limiting services to only providing loans, banking, or audit and accounting services restricts the broader interpretation necessary to understand financial services comprehensively.