Why is London a financial centre?
London concentrates banking, insurance, asset management, market infrastructure and professional services in one regulated jurisdiction with English-language contract law. Financial firms operating there must be authorised, and the Financial Conduct Authority publishes who is.
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How it works
Authorisation is granted by activity, so a firm's permissions state what it may actually do. The register lets a counterparty verify status before entering an agreement, which is the practical use of the centre's regulation.
Commonly mixed up with
Being based in London is not the same as being authorised in the UK, and a marketing address proves nothing about permissions.
Why is London a financial centre?
| Knowledge, London | Business and finance |
|---|---|
| Short answer | London concentrates banking, insurance, asset management, market infrastructure and professional services in one regulated jurisdiction with English-language contract law. Financial firms operating there must be authorised, and the Financial Conduct Authority publishes who is. |
| How it works | Authorisation is granted by activity, so a firm's permissions state what it may actually do. The register lets a counterparty verify status before entering an agreement, which is the practical use of the centre's regulation. |
| Commonly mixed up with | Being based in London is not the same as being authorised in the UK, and a marketing address proves nothing about permissions. |
| Last reviewed | 2026-08-08 |
Short questions
- Who authorises financial firms?
- The FCA, and the Prudential Regulation Authority for some firms.
- Can I check a firm?
- The FCA register shows permissions and status.
- Does EU passporting apply?
- It ended with the UK's departure from the EU.
- Is English law required?
- Parties choose the governing law of a contract.
- Where is the register?
- The FCA publishes the register online.
Sources
More in this track
- How do you register a company in the UK?
- Can a foreign founder open a UK business bank account?
- When does a UK business have to register for VAT?
- How does UK corporation tax work?
- What does an employer need before hiring in the UK?
- What decides office costs in London?
- What accounts must a UK company file?
- What is the difference between a business visit and working in the UK?
- Branch or subsidiary: how does a foreign company enter the UK?
These pages explain how the rules work and link the authority that owns them. They are not legal, tax or immigration advice, and amounts and thresholds change, so open the source before you act.
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Machine-readable summaries for AI agents: /llms.txt and /llms-full.txt.
