Pt 5. Responsibilities and Approach to Regulation - FCA Objectives

Question 1

What are the regulatory principles the FCA are required to follow?

Answer 1

1. Efficiency and economy
2. Proportionality - teh burdent or restriction imposed on person or activity shoudl be proportionate to the benfits which are expected to result.
3. Sustainable growth
4. Consumer responsibility
5. Senior management responsibility
6. Recognising differences in businesses carried out by different regulated persons
7. Openness and disclosure
8. Transparency

Question 2

What are the purpose of FCA objectives?

Answer 2

• Provide political and public accountability through the FCA Annual Report.
• Govern the way FCA carries out its general functions, e.g. rule-making, giving advice and guidance and determining general policy and principles.
• Assist in providing legal accountability, where FCA interprets objectives wrongly, or fails to consider them, it caqn be challenged in courts by judicial review.

Question 3

What will the consumer duty introduce?

Answer 3

• New Consumer Principle, providing an overarching standard of conduct.
• Cross-cutting rules and outcomes to support the consumer principle.