What does 'market integrity' entail according to FCA regulations?

Market integrity, as defined by FCA regulations, primarily involves the prevention of market abuse and the maintenance of confidence in the financial markets. This means ensuring that all market participants operate under a fair and transparent system, where rules are adhered to, and unethical practices are addressed. By focusing on preventing market abuse, the FCA aims to create an environment where investors can trust that they are receiving accurate information and that the market operates efficiently without manipulation.

This focus on preventing acts such as insider trading, fraud, and misleading information is crucial for sustaining the overall trust that the public has in the financial system. When consumers and investors believe in the integrity of the markets, they are more likely to engage in trading and investment activities, which can enhance overall market stability and growth. Therefore, market integrity is essential for fostering a fair and effective marketplace, resulting in the correct choice being centered on preventing market abuse and maintaining confidence.