What is the purpose of the FCA?

The purpose of the FCA (Financial Conduct Authority) includes having an overarching strategic objective to ensure that relevant markets function well. This entails promoting competition, facilitating effective consumer choice, and supporting innovation and market integrity within the financial services sector. By focusing on how the markets operate as a whole, the FCA aims to ensure that the financial services industry works for the benefit of consumers and the economy.

This approach is crucial since a well-functioning market can lead to better prices, improved services, and overall economic stability, which aligns with the FCA’s mandate of protecting consumers and ensuring confidence in the UK’s financial markets. Thus, the correct choice highlights the FCA’s broad and multifaceted role in overseeing market operations rather than restricting it to specific aspects like promoting investment or maintaining financial stability of individual firms.