What is the primary goal of the Financial Conduct Authority?

The primary goal of the Financial Conduct Authority (FCA) is to promote competition in the financial market. This focus on competition is essential because it helps create a better environment for consumers and businesses alike, ensuring that products and services are offered at fair prices and of high quality. By fostering competition, the FCA aims to prevent market abuses and encourages innovation, which benefits consumers in terms of choice and access to financial services.

The other options, while important aspects of the financial system, do not align with the primary role of the FCA. For instance, ensuring the profitability of banks is not a regulatory objective, as the FCA primarily focuses on consumer protection and maintaining market integrity. Oversight of prudential regulation is typically the domain of other financial bodies, such as the Prudential Regulation Authority. Managing monetary policy is a function carried out by the Bank of England, not the FCA, which does not directly influence interest rates or inflation targeting.