What is the main focus of the FCA’s supervisory approach?

The main focus of the FCA's supervisory approach is to achieve its statutory objectives. The FCA's statutory objectives include protecting consumers, enhancing market integrity, and promoting competition. This overarching goal means that the FCA employs a risk-based supervisory strategy to ensure that firms comply with regulations and operate in a manner that is fair and transparent, ultimately safeguarding the interests of consumers and the stability of the financial market.

By focusing on these objectives, the FCA can allocate its resources effectively to address areas of higher risk and ensure that firms are meeting their obligations. This proactive approach not only aids in maintaining trust in the financial system but also helps in fostering a regulatory environment that supports fair practices and competition in the financial industry.

The other choices do not align with the primary aim of the FCA. While industry innovation is important, it should occur within a framework that prioritizes consumer protection and market integrity, which are the FCA's foundational concerns.