Why is consumer protection important to the FCA?

Consumer protection is a fundamental principle for the Financial Conduct Authority (FCA) because it directly impacts the confidence that consumers have in the financial system. By ensuring that consumers can make informed decisions, the FCA helps create a marketplace where individuals understand the products available to them, including the risks and benefits associated with these financial services. This informed decision-making fosters trust and stability within the financial system, as consumers who feel secure are more likely to engage with financial products, contributing to a more robust economy.

Moreover, when consumers have confidence in the regulatory framework and feel protected against unfair practices, this encourages participation in the financial markets, leading to a healthier financial ecosystem. The FCA's commitment to consumer protection ensures that financial products are designed and marketed transparently, which is essential in protecting consumers from misleading practices and encouraging ethical behavior among firms.