Which of the following tools is part of the FCA’s supervision framework?

The FCA's supervision framework employs a variety of tools designed to effectively oversee and regulate firms within the financial services sector. The diagnostic tool is particularly significant as it allows the FCA to assess the practices, operations, and culture of firms. By utilizing diagnostics, the FCA can identify areas of concern and ensure that firms are meeting regulatory standards and are acting in the best interests of consumers.

This tool is data-driven and often includes reviews of business models and operational practices, enhancing the FCA's ability to proactively address potential risks in the financial system. Through this approach, the FCA not only seeks to regulate but also to support firms in improving their practices.

In contrast, while investment evaluation, market comparison, and public feedback are important activities related to the financial ecosystem, they do not specifically serve as tools within the FCA's supervision framework. For instance, investment evaluation may inform broader regulatory policy discussions, but it does not directly relate to the oversight of individual firms' compliance and operational health.