Which organizations can the FPC give directions to?

The correct answer relates to the capabilities of the Financial Policy Committee (FPC) within the Bank of England. The FPC has the authority to issue recommendations and directions specifically to the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA).

This is because the FPC plays a crucial role in identifying and addressing systemic risks to the UK financial system and aims to enhance the resilience of financial institutions. The FCA is responsible for ensuring that financial markets function well, while the PRA is focused on promoting the safety and soundness of banks, insurers, and investment firms. Therefore, through its directions, the FPC can influence how these regulatory bodies perform their roles, particularly concerning macroprudential regulation.

In contrast, the other choices involve entities that do not fall directly under the FPC's purview for directions. For instance, the Bank of England and HM Treasury are integral parts of the UK's financial architecture but do not receive directions from the FPC; instead, they work alongside it. The Financial Ombudsman Service (FOS) serves a different function related to dispute resolution and is not a target for FPC directives. Lastly, while the FPC has a keen interest in the actions of financial firms and banks, it does