Topic 12

Question 1

FCA’s Objectives, role and responsibilities;

Strategic objective

Answer 1

To ensure the relevant markets function well

Question 2

FCA’s Objectives, role and responsibilities;

● Operational objectives

Answer 2

o To secure an appropriate degree of protection for consumers
o To maintain the integrity of the UK financial system
o To promote effective competition in the interest of consumers

Question 3

FCA’s Objectives, role and responsibilities;

● Consumer protection. The FCA must have regard to:

Answer 3

o Differing degrees of risk involved in different kinds of investments
o Differing degrees of experience and expertise that different consumers may have
o The needs of consumers for timely, accurate and fit for purpose information
o Consumers should take responsibility for their actions
o Those providing financial services should have a duty of care that is appropriate regarding the risk involved and the capability of the consumer
o Differing expectations that consumers may have in relation to different investments
o Any information that the consumer financial education body has provided to the FCA
o Any information that the scheme operator of the ombudsmen scheme has provided to the FCA

Question 4

FCA’s Objectives, role and responsibilities;

● Integrity

Answer 4

o Its soundness, stability and resilience
o Not being used for financial crime
o Not being used for behaviour that constitutes market abuse
o Orderly operation of the financial markets
o Transparency of the price formation