What is the role of the FCA concerning dual-regulated firms?

The role of the Financial Conduct Authority (FCA) concerning dual-regulated firms is primarily that of a conduct regulator. Dual-regulated firms are typically large financial institutions that fall under the supervision of both the FCA and the Prudential Regulation Authority (PRA). While the PRA focuses on the prudential regulation, ensuring firms are financially sound and can withstand financial stresses, the FCA's mandate revolves around ensuring that firms conduct their business in a manner that is fair, transparent, and in the best interest of consumers.

By being the conduct regulator, the FCA enforces standards regarding how firms treat their customers, manages consumer protections, and oversees market integrity. This involves monitoring firms’ business practices and ensuring compliance with regulations that promote ethical conduct and fair treatment within the financial sector.

In contrast, the other roles listed, such as funding authority and policy maker, do not specifically align with the FCA’s direct responsibilities towards dual-regulated firms. A funding authority would pertain more to aspects related to financial support or funding structures, which is outside the FCA's primary function. While the FCA does engage in policy-making as part of its overall strategy, that is not its main role regarding the operational oversight of dual-regulated firms. A monitoring agency typically refers to an organization