What significant power was transferred to the FCA from the FSA regarding product regulation?

The transfer of the power to prohibit or ban products for a set time from the Financial Services Authority (FSA) to the Financial Conduct Authority (FCA) signifies a critical enhancement in the regulatory framework designed to protect consumers and ensure market integrity. This capability allows the FCA to act decisively in response to emerging risks associated with financial products that may be harmful or unfair to consumers.

By being able to temporarily ban or prohibit certain products, the FCA can swiftly address issues that pose immediate risks to consumers, signaling a stronger regulatory approach towards product oversight. This proactive measure is essential, especially in a dynamic financial market where products can evolve rapidly, potentially leading to consumer detriment.

In contrast, the other options presented do not reflect the actual powers associated with the FCA following its establishment. Unifying all banking regulations is not specifically within the FCA's remit, and guaranteeing consumer satisfaction is a broader goal rather than a direct regulatory power. Setting interest rates for loans is typically the responsibility of central banks, not a regulatory body focused on consumer protection and market conduct.