What action can HMT take regarding the FCA's role?

The action that HMT (Her Majesty's Treasury) can take regarding the FCA's (Financial Conduct Authority) role is to change its nature through Parliament. HMT holds the authority over financial regulation in the UK and has the power to make significant changes to the FCA’s structure or functions by proposing legislative amendments or new legislation. This can result in adjustments to the regulatory framework under which the FCA operates, thereby fundamentally altering its role, responsibilities, and powers.

This influence stems from the oversight that HMT has as a government department, which includes setting the strategic direction for the FCA and ensuring that it fulfills its obligations effectively. Changes to the FCA’s role would typically require consultation and approval from Parliament, highlighting the importance of legislative action in shaping the regulatory environment.

The other options, while they might pertain to regulatory considerations, do not align with HMT's primary powers over the FCA. For instance, increasing the budget or authorizing new trading activities falls outside the direct control of HMT, as these matters are typically governed by established financial procedures or the operational capabilities of the FCA itself. Investigating consumer complaints is a function that the FCA directly manages, rather than a responsibility or avenue for HMT's intervention.