How does the FCA define consumers?

The FCA defines consumers as individuals or businesses that receive a financial product or service. This definition is pivotal because it emphasizes the role of consumers in the financial services market as the end-users of products offered by financial firms. Recognizing consumers in this way highlights the importance of consumer protection, ensuring that those who utilize these products or services have their interests safeguarded. This definition is broad enough to encompass various types of individuals and organizations, recognizing that both personal and business entities can engage with financial services, thereby capturing the diverse landscape of financial consumers.

The other options do not align with the FCA's perspective on consumers. Definitions that limit consumers to those providing financial products or only businesses engaged in specific trading activities do not reflect the FCA's focus on protecting the interests of the actual users and recipients of financial products and services.