FCA Restricted Six Lenders. Being On A List Is Not Authorization.
The FCA blocked six firms from taking new clients over weak anti-money laundering controls. An Annex 1 registration is not full authorization.
News commentary and opinion. Not financial advice.
What happened
On 23 October 2026 the UK Financial Conduct Authority announced restrictions on six unregulated lending firms. The firms operate under Annex 1 of the Money Laundering Regulations.
The regulator agreed voluntary requirements with Kingscrown Finance, MOMSB, Momentus Capital, Grosvenor Funding, Grosvenor Funding North West, and Abbital. Under the terms, the firms cannot onboard new customers or expand existing credit facilities.
The action follows targeted supervisory work across roughly 900 registered Annex 1 entities. The FCA identified serious deficiencies in anti-money laundering policies, customer verification, and ongoing monitoring procedures across the sector.
Primary source: Financial Conduct Authority, Action on Annex 1 firms, 23 October 2026
The roast
Unregulated credit outfits love flashing an FCA registration reference to retail borrowers. Our read is blunt. Registration for money laundering supervision is merely an anti-crime checkpoint. It provides zero regulatory protection for client money.
These entities operate without FSCS compensation backing and without formal conduct supervision. When things go wrong, marketing claims of being "FCA registered" quickly evaporate. The regulator intervened only after basic compliance systems fell apart.
Calling an Annex 1 entry a regulatory seal of approval is pure marketing deception. Six firms discovered that reality this week. Retail traders encounter identical misleading claims every day on unregulated broker clones.
Why it matters to traders
- Always check the official Financial Services Register before depositing funds. Confirm whether a firm holds full authorization or mere money laundering registration. Our FCA regulated brokers guide outlines the exact distinctions between authorization tiers.
- Firms lacking full conduct authorization cannot offer statutory dispute resolution through the Financial Ombudsman Service. Our broker review criteria guide explains why statutory regulatory oversight remains essential for capital safety.
- Never rely on website footers claiming regulatory supervision. Search the firm name directly in the FCA public register. If the status shows restricted or unsupervised lending, protect your trading capital and walk away.
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Disclaimer: This is news commentary and reflects the opinion of ForexRoasted. It is not financial or investment advice. Trading CFDs and Forex involves substantial risk and is not for every investor.