What is the primary role of the FCA in financial markets?

The primary role of the FCA, or Financial Conduct Authority, is to regulate financial firms to ensure that consumers are treated honestly and fairly in the financial markets. This involves setting standards for behavior and ensuring that firms adhere to rules designed to protect consumers from unfair practices, mis-selling, and other risks that can arise in financial services. By doing so, the FCA aims to enhance the integrity of the financial system and promote competition, which ultimately leads to better products and services for consumers.

The FCA's focus is on the conduct of firms rather than on providing loans or directly managing transactions; such tasks fall under other entities. Additionally, the FCA does not oversee government funding for banks, as its mandate centers around regulating firms within the financial sector to uphold consumer rights and market integrity. This regulatory role is crucial for maintaining trust in the financial system and ensuring that it operates in a safe and transparent manner for all participants.