What are the general duties of the Financial Conduct Authority (FCA)?

The Financial Conduct Authority (FCA) plays a crucial role in regulating the financial services industry in the UK, and one of its primary responsibilities is making rules and issuing guidance. This involves creating regulations that financial institutions must follow to ensure consumer protection, market integrity, and competition. By establishing these rules, the FCA seeks to prevent harm to consumers and promote fair and effective markets.

The issuance of guidance is equally important, as it helps firms understand their regulatory obligations and how to comply with the regulations. This proactive approach enables the FCA to shape behaviors within the financial services sector, driving improvements in practices and enhancing transparency.

This comprehensive regulatory framework is essential for maintaining trust in the financial system, ensuring that not only are consumers protected but also that the markets operate fairly and efficiently. The FCA's dual role of both rule-making and providing guidance allows for adaptability to evolving market conditions and consumer needs.