Introduction
Most of our guides across ShopTera briefly mention that an insurer or broker should be authorised by the Financial Conduct Authority. This guide goes into that check properly: what "authorised" actually means, how to use the FCA's own verification tools before you buy, what an Appointed Representative is, how clone-firm scams work, and what to do if something about a firm doesn't add up.
Once you've confirmed a broker is properly authorised, it's also worth understanding how they're actually paid and what that means for the advice you receive. See our How Insurance Brokers Work and Get Paid UK guide for a full explanation of commission, fees and FCA disclosure rules.
This is a product-agnostic guide, applying whether you're buying motor, home, travel, life, warranty or any other personal insurance, and to brokers and intermediaries as well as insurers. It is a general educational guide to using the FCA's public verification tools, not legal advice, and it does not tell you whether any specific firm is legitimate; only the FCA's own tools, checked directly, can do that.
Key Terms Explained
- Authorised
- A firm has been assessed by the FCA against certain standards and given permission to carry out specific regulated activities, such as arranging or advising on insurance.
- Registered
- A firm meets requirements the FCA sets for a narrower purpose, such as anti-money-laundering supervision of certain crypto activities, without needing full authorisation or permission for that activity.
- FCA Firm Checker
- An FCA consumer tool designed to help you check, before you buy, whether a firm is authorised and holds permission for the specific product or service it's offering you.
- Financial Services Register (FS Register)
- The FCA's fuller public record of firms, individuals and other bodies it authorises or registers, including past names, individual roles, and disciplinary action.
- Firm Reference Number (FRN)
- A unique number the FCA assigns to each authorised or registered firm, used to look it up on the Firm Checker or Register.
- Appointed Representative (AR)
- A firm that carries out regulated activities on behalf of another firm, its principal, which agrees the AR's permitted scope of business and is responsible for it.
- Principal Firm
- An authorised firm that takes responsibility for the regulated activities of one or more Appointed Representatives acting on its behalf.
- Clone Firm
- A fraudulent operation that copies the identity of a genuine, authorised firm, such as its name, address or FRN, to trick people into believing they're dealing with the real business.
Why This Matters When Buying Insurance
Insurance is a regulated activity in the UK. Firms that arrange, advise on or provide life or general insurance, covering things like travel, home or motor cover, must be authorised by the FCA to do so lawfully. Authorisation is what gives you access to two important protections if things go wrong.
Access to the Financial Ombudsman Service
If you deal with a firm that isn't authorised, or lacks the correct permission for what it sold you, you generally won't have access to the Financial Ombudsman Service to bring a complaint. Our Financial Ombudsman Service and Insurance Complaints UK guide covers that process for properly authorised firms.
Access to FSCS Protection
Similarly, if the firm fails, you're unlikely to be protected by the Financial Services Compensation Scheme (FSCS) unless it was properly authorised. See our FSCS Protection for Insurance UK guide for how that protection works.
A Simple Check, Genuinely Worth the Time
Checking a firm before you buy usually takes a few minutes and is a meaningful defence against a range of scams, worth building into how you shop for insurance with a new or unfamiliar firm.
Using the FCA Firm Checker
The FCA Firm Checker is the tool the regulator recommends using before you buy a financial product or service, including insurance, a mortgage or a funeral plan. It answers the practical question: is this firm allowed to sell me what it's offering?
How to Use It
Search for the firm by name on the Firm Checker, select the type of product or service you're looking to buy, and check whether the firm is shown as authorised and holding permission for that specific activity. Checking a firm this way, before you commit to buying, gives you the best chance of protection if something later goes wrong.
What It Shows
The Firm Checker shows current authorisation status and relevant permissions, along with contact details the firm has provided and confirmed, including its registered name, other trading names and complaint contact details. Most authorised firms must confirm or update this information at least once a year, and you can see whether a firm has done so.
Using the Financial Services Register
The Financial Services Register serves a different, broader purpose than the Firm Checker. It's the FCA's full public regulatory record, and it's the right tool if you want more than a simple "can I buy from this firm" answer.
When to Use the FS Register Instead
Use the FS Register to check whether a firm was authorised when you first started dealing with it, look up an individual and the roles they've held, review a firm's disciplinary history, or confirm details such as its permission to approve financial promotions or handle client money.
What It Includes That the Firm Checker Doesn't
The FS Register can show historic fines, a firm's full history of past and present permissions, and information about individuals, none of which the Firm Checker is designed to surface. One notable exception: FCA employees themselves are not listed on the FS Register, since it's a record of firms and individuals the FCA authorises or registers, not FCA staff.
Firm Checker vs Financial Services Register
Both tools draw on the same underlying regulatory data, but they're built for different jobs. This comparison summarises when each is the better choice.
| Feature | FCA Firm Checker | Financial Services Register |
|---|---|---|
| Best used for | Checking a firm before you buy from it | Checking a firm's history, or an individual, in more depth |
| Shows current authorisation and permissions | Yes | Yes |
| Shows individuals and their roles | No | Yes |
| Shows historic fines and enforcement action | No | Yes |
| Shows permission to approve financial promotions | No | Yes |
| Shows client money handling permissions | No | Yes |
| Data refresh frequency | On average, roughly every 24 hours | On average, roughly every 24 hours |
If you're not sure which to use, the FCA's own guidance is straightforward: use the Firm Checker if you're about to buy something, and use the FS Register if you're looking into a firm's history or an individual.
Clone Firms: How the Scam Works
A clone firm is a specific scam where fraudsters pretend to be a genuine, FCA-authorised firm, rather than inventing a fake firm from scratch. Because the identity being copied is real and authorised, this scam can be particularly convincing.
Common Clone Firm Tactics
- Using the genuine firm's name and address, or copying its Firm Reference Number.
- Copying the genuine firm's website with small changes, such as a different phone number.
- Pointing you to the real firm's genuine website but supplying different contact details to use.
- Giving accurate details for a genuine firm but a wrong or altered phone number to contact.
- Using email addresses resembling the genuine firm's, or generic providers like Outlook or Gmail rather than the firm's own domain.
Why They Claim the Register Is "Out of Date"
Some clone firm scammers claim that a genuine firm's contact details on the Firm Checker or FS Register are out of date, to justify why you should use the different details they've provided instead. This is unlikely to be true, since the FCA updates both the Firm Checker and Register, on average, roughly every 24 hours.
How Clone Firm Scams Typically Start
Scammers may contact you unexpectedly by phone or email, but contact can also come through newsletters, social media, or after you've searched online for insurance and submitted your details somewhere. Unexpected contact is, in itself, a reason to slow down and verify independently.
Verifying Contact Details Safely
Verifying a firm properly means more than searching its name once. The FCA sets out a specific sequence worth following.
The Recommended Steps
- Search for the firm by name on the FCA Firm Checker.
- Select the specific product or service you're buying.
- Check the firm is authorised and holds permission for that product or service.
- Check the firm's listed contact details match what you've been given. If none are listed, or a firm claims they're out of date, call the FCA on 0800 111 6768.
Additional Checks Worth Making
Beyond the Firm Checker, you can cross-check a firm's details against its own website, directory enquiries, or Companies House. If navigating to the FS Register or Firm Checker yourself, double-check the web address carefully; a small URL alteration is a known tactic for directing people to fake versions of these pages.
The same Firm Checker also covers claims management companies, which have been FCA-regulated since April 2019 and are subject to their own fee caps and conduct rules, distinct from insurers and brokers.
How This Differs From Ghost Broking
This guide is deliberately broad and product-agnostic: it covers how to check any insurer or broker's FCA authorisation, and how to spot clone firms impersonating genuine ones, across any type of insurance or financial product.
Ghost broking is a different, more specific problem. It refers to criminals posing as insurance brokers, typically targeting car insurance and often young drivers through social media, and selling fake or invalid policies at seemingly cheap prices before disappearing once they've been paid. Ghost brokers frequently aren't attempting to impersonate a specific real, authorised firm at all; they're simply operating as unauthorised sellers of fake documents. Our dedicated Ghost Broking and Car Insurance Fraud UK guide covers that scam specifically, including its warning signs and consequences.
The two topics overlap at the edges: a Firm Checker search is one defence against ghost broking too, and warranty scams (fraudulent sales of what are, legally, insurance contracts) sit closer to this guide's broader focus. If your concern is cheap car insurance offered through social media, start with the ghost broking guide; if your question is "how do I verify any insurer or broker before I buy," this guide is the right one.
What to Do If Something Looks Suspicious
If a firm's authorisation status, permissions or contact details don't check out, there are clear next steps.
Don't Proceed on the Firm's Terms
Don't use a phone number, link or contact detail supplied only by the firm or person contacting you. Navigate independently to the official FCA website instead, and use the Firm Checker or Register, or contact the FCA directly.
Contact the FCA
If you can't verify a firm, or suspect you've been contacted by a clone firm or unauthorised business, call the FCA on 0800 111 6768 or use its online contact form. You can also check the FCA's published Warning List of firms it has already issued alerts about.
Report Fraud If You've Lost Money
If you've already lost money to a scam, report it to Report Fraud, and then let the FCA know as well. The FCA can't personally help you recover lost money, but it investigates reports and this can help protect others. For a fraudulent motor policy specifically, the Insurance Fraud Bureau's Cheatline is a further reporting route, alongside checking your vehicle on the Motor Insurance Database.
Real-World Examples
Case Study: Mismatched Contact Details
Someone receives an unsolicited call claiming to represent a well-known, genuinely authorised insurer. They search the Firm Checker, confirm the real firm is authorised, but notice the phone number they were called from doesn't match. They contact the FCA, and are advised this pattern is consistent with a clone firm using the genuine insurer's identity.
Case Study: Checking the Right Permission
A consumer is offered a warranty-style policy alongside an appliance purchase. Rather than assuming the seller is covered because it's a well-known retailer, they check the Firm Checker specifically for insurance-related permission, since arranging this type of warranty is a regulated activity requiring its own authorisation.
Case Study: Buying Through an Appointed Representative
A buyer notices the firm selling them a policy is listed as an Appointed Representative rather than authorised in its own right. They check the listed principal and confirm the AR's permitted activities cover the policy, giving clearer confidence about who is ultimately responsible for the sale.
Common Mistakes to Avoid
- Clicking a link in an email or text to reach the Firm Checker or FS Register, rather than navigating there directly.
- Trusting a phone number supplied only by the firm contacting you, without cross-checking it.
- Assuming a firm is covered for a purchase just because it's "authorised," without checking the specific permission applies.
- Accepting a claim that a firm's Register details are "out of date" at face value.
- Not checking an Appointed Representative's principal, or its actual permitted scope of business.
- Assuming authorisation removes all risk, rather than treating it as one part of due diligence.
Common Myths
- Myth: If a firm appears on the Register, everything about it is guaranteed legitimate. Authorisation confirms specific permissions and gives you access to protections like the Ombudsman and FSCS, but it doesn't verify every trading detail or remove all risk.
- Myth: A professional-looking website with FCA branding proves a firm is authorised. Design and logos can be copied. Only checking the firm directly on the Firm Checker or Register confirms its status.
- Myth: Once you've checked a firm, you never need to check again. Authorisation status can change, and clone firms can begin impersonating a firm at any point, so re-checking before a new purchase is worthwhile.
- Myth: Ghost broking and clone-firm scams are the same thing. They're different mechanisms; ghost broking typically involves unauthorised sellers of fake motor policies, while clone firms impersonate a real, authorised firm's identity.
Frequently Asked Questions
What does it mean if an insurer or broker is FCA-authorised?
It means the Financial Conduct Authority has assessed the firm against certain standards and given it permission to carry out specific regulated activities, such as arranging or advising on insurance. Authorisation applies to particular activities rather than to everything a firm might do, so it's worth checking that a firm's permissions actually cover the product or service you're buying.
How do I check if an insurance broker is authorised by the FCA?
Before buying, the FCA recommends using the FCA Firm Checker to search for the firm by name, confirm it's authorised, and check it holds permission for the specific product or service you want. You can also search the Financial Services Register for a fuller regulatory history, including past names, individuals, and any disciplinary record.
What's the difference between the FCA Firm Checker and the Financial Services Register?
The Firm Checker is designed for checking a firm before you buy from it, confirming current authorisation and relevant permissions. The Financial Services Register is the FCA's fuller public record, useful for checking a firm's history, individuals who work in financial services, and details such as historic fines or a firm's permission to approve financial promotions.
What is a clone firm?
A clone firm is where fraudsters pretend to be a genuine, FCA-authorised firm, often by copying its name, address, firm reference number or website, sometimes with small changes such as a different phone number. The real firm is usually unaware its identity is being used, and the fraudsters are not actually authorised themselves.
What is an Appointed Representative, and does it matter for insurance?
An Appointed Representative (AR) carries out regulated activities, such as arranging insurance, on behalf of another firm known as its principal, which agrees what the AR can do and is responsible for that business. If an AR exceeds its principal's permitted activities, you may not be protected by the Ombudsman or FSCS, so it's worth checking the AR's permitted activities and principal on the Firm Checker or Register.
Does being on the Financial Services Register guarantee a firm is trustworthy?
No. Authorisation and registration reduce the risk of dealing with a firm and give you access to protections such as the Ombudsman and FSCS, but they don't remove all risk or guarantee every trading detail is beyond question. A firm can be genuinely authorised and still be impersonated by a separate clone firm, or fall short in individual cases.
What should I do if a firm's contact details don't match the Firm Checker?
Treat this as a warning sign. The FCA updates the Firm Checker and Register, on average, roughly every 24 hours, so it's unlikely the listed details are genuinely out of date. If you can't find matching contact details, or a caller claims the listed details are wrong, contact the FCA directly on 0800 111 6768 rather than relying on the number or link you were given.
Is this the same as ghost broking?
No. Ghost broking is a specific type of car insurance fraud where criminals pose as brokers and sell fake or invalid policies, often through social media. This guide covers the broader, product-agnostic question of how to verify any insurer or broker's FCA authorisation and spot clone-firm impersonation. See our Ghost Broking and Car Insurance Fraud UK guide for that specific scam.
What happens if I use an unauthorised firm or broker?
Operating without required FCA authorisation is against the law, and if you deal with such a firm you generally won't have access to the Financial Ombudsman Service if you want to complain, or FSCS if the firm fails. This makes it considerably harder to get your money back or resolve a dispute.
How do I report a suspected clone firm or scam?
You can report a suspected clone firm, unauthorised firm or scam directly to the FCA on 0800 111 6768 or through its online contact form. If you've already lost money, also report it to Report Fraud, and for fraudulent motor insurance specifically, the Insurance Fraud Bureau's Cheatline is a further route.
Can a genuine, authorised insurer still be impersonated by scammers?
Yes. Clone firm scams rely on copying the identity of a real, authorised firm, so an insurer being genuinely authorised doesn't stop fraudsters pretending to be that same firm elsewhere. This is why checking the actual contact details against the Firm Checker or Register, rather than assuming a well-known name is proof enough, remains important.
References and Editorial Standards
This guide is reviewed regularly by the ShopTera Editorial Team to reflect current guidance published directly by the Financial Conduct Authority, including its pages on how to check a firm or individual is authorised, clone firms and individuals, and insurance and warranty scams. Tools, URLs and contact details referenced here are subject to change; always use the FCA's official website directly to confirm current information rather than relying solely on this guide. This guide is intended for general educational purposes and does not constitute legal advice, and it does not confirm the legitimacy of any specific firm.
| Version | Date | Change |
|---|---|---|
| 1.0 | 20 August 2026 | Initial publication |
Conclusion
Checking that an insurer or broker is FCA-authorised, and that its permissions cover what you're buying, takes only a few minutes using the Firm Checker, with the Register available for a deeper look at a firm's history. Verifying contact details independently, understanding Appointed Representative arrangements, and recognising clone-firm warning signs all add protection on top of the basic check.
None of this removes all risk entirely, and authorisation isn't an unconditional guarantee of every detail of a firm's trading. But it's the single most reliable, freely available step you can take before buying insurance from an unfamiliar firm, and it's what keeps the Ombudsman and FSCS available if something later goes wrong.