Which of the following describes a key purpose of the FCA?

The key purpose of the Financial Conduct Authority (FCA) is to protect and enhance the integrity of the UK financial system. This involves overseeing the conduct of financial firms to ensure they operate in a fair, transparent, and effective manner, thereby fostering confidence among consumers and investors. By maintaining the integrity of the financial system, the FCA aims to promote competition and ensure that financial markets work well for individuals, businesses, and the overall economy.

The focus on protecting the integrity of the financial system is critical because it helps prevent misconduct, reduces the risk of financial crises, and provides a stable environment for financial activities. The FCA's role is not to complicate regulations or centralize banking services, nor is it limited to regulating foreign investment. Instead, it encompasses a broader mandate that affects a wide range of financial services and firms within the UK, ensuring that all aspects of the financial sector adhere to high standards.