What is the FCA's stance on promoting competition in financial services?

The FCA's stance on promoting competition in financial services is centered around the belief that increased competition leads to better outcomes for consumers and fosters innovation within the market. The regulatory body actively seeks to create and maintain an environment where various firms, including both established entities and new entrants, can compete fairly. This competition is essential as it drives firms to improve their products and services, resulting in more choices, better pricing, and enhanced customer experiences.

By advocating for competition, the FCA aims to prevent monopolistic practices and ensure that no single company can dominate the market to the detriment of consumers. This approach is aligned with its mission to protect consumers, enhance the integrity of the UK financial system, and promote competition for the benefit of all market participants.

In contrast, the other options suggest limiting competition or focusing solely on existing firms, which would undermine the FCA’s objectives of consumer protection and market innovation.