5A.2

Question 1

FCA operational objectives

Answer 1

• Protection of consumers
• Integrity of the UK financial system
• Promote effective competition in consumer interest

Question 2

FCA monitor firms so they meet the Part 4a permission…

Answer 2

• Permission given by the FCA/PRA to carry out regulated activities

Question 3

Competition and Markets Authority (CMA)

Answer 3

• Investigate how FCA rules are affecting market competition
• Change them if they are non-competitive

Question 4

HM Treasury

Answer 4

• Formulate financial and economic policy
• Raise substantial growth rates to create economic and employment opportunities

Question 5

Exam advice

Answer 5

• don’t always choose the most severe FCA penalty
• ‘accidental’ and ‘inadvertently’ more lenient FCA sanctions

Question 6

HM Treasury and FCA

Answer 6

• FCA is accountable to HM Treasury
• The regulator listens to these views but does not have to act on them