What is a temporary product intervention power of the FCA?

The temporary product intervention power of the FCA allows it to prohibit or ban specific financial products for up to 12 months when there is a need to protect consumers from potential harm. This power is an essential regulatory tool that enables the FCA to act quickly and decisively in situations where there is an urgent concern regarding a product’s safety or suitability for consumers.

This response mechanism is particularly vital in fast-moving markets where traditional regulatory approaches might lag behind the emergence of new products or practices that could pose risks. By utilizing this temporary power, the FCA can effectively safeguard consumers in the short term while allowing for further investigation or consideration of the issues surrounding the product in question.

Regarding the other options, the first choice focuses on a long-term review of banking services, which does not align with the FCA’s immediate intervention capabilities. The third choice suggests indefinite mandates for product disclosures, which diverges from the specific and time-limited nature of temporary intervention. The last option about enhancing marketing strategies does not relate to the FCA's regulatory framework focused on consumer protection and market integrity.