What is the purpose of the FCA’s supervision framework?

The purpose of the FCA’s supervision framework centers around its role in assessing and ensuring compliance with regulatory requirements. This framework is designed to protect consumers and maintain the integrity of the UK’s financial markets by overseeing the conduct of financial firms. By monitoring institutions and their adherence to established regulations, the FCA can identify potential risks and intervene when necessary to ensure that firms operate within legal and ethical boundaries. This helps to foster trust in the financial system and protects consumers from malpractices.

Promoting financial products, evaluating market competition, and setting interest rates are not primary objectives of the FCA’s supervision framework. While these elements can be influenced by the FCA's work in regulation, they do not capture the essence of the supervisory role, which is specifically focused on compliance and the safeguarding of market integrity.