Which of the following financial products must be authorized by the FCA?

The requirement for financial products to be authorized by the FCA is critical in maintaining the integrity and safety of the financial services industry in the UK. Investment advice and insurance are regulated activities under the FCA's rules because they involve a higher level of risk and complexity compared to other products. These activities require firms to adhere to specific standards concerning transparency, fair treatment of customers, and maintaining adequate capital reserves to ensure they can meet their obligations.

Investment advice can influence how individuals manage their savings and investments, making it essential for firms providing such advice to be properly vetted and authorized to prevent misconduct and protect consumers. Insurance products, similarly, involve financial risk management; therefore, regulation ensures that providers are capable of fulfilling claims and providing customers with the appropriate coverage.

In contrast, personal savings accounts, utility services, and real estate transactions do not require FCA authorization in the same way. While financial institutions offering savings accounts may be regulated, the accounts themselves generally do not fall under FCA authorization like investment advice and insurance do. Utility services are typically considered necessary services rather than financial products and are governed by different regulations. Real estate transactions are also subject to distinct laws and regulations and do not inherently require FCA oversight unless they involve specific financial products or services related to property investment.