What is a primary function of the Financial Conduct Authority (FCA)?

The Financial Conduct Authority (FCA) plays a crucial role in maintaining the integrity of the financial markets in the UK, and one of its primary functions is to promote effective competition among financial service providers. By fostering competition, the FCA is able to ensure that consumers have access to a range of financial products and services that meet their needs, at fair prices. This competition helps to drive innovation and efficiency within the market, ultimately benefiting consumers and promoting a dynamic financial sector.

The FCA does not implement banking technology solutions, as that responsibility typically falls to the individual financial institutions or technology service providers. Additionally, the authority does not set interest rates for financial institutions; this task is generally managed by central banks, such as the Bank of England, which uses interest rates as a tool for monetary policy. Finally, while the FCA oversees the activities of financial institutions, it does not provide loans to businesses directly; instead, it regulates and supervises entities that may offer such financial services.