What is the primary goal of the FCA in regulating financial markets?

The primary goal of the Financial Conduct Authority (FCA) is centered around the protection of consumers, the enhancement of market integrity, and the promotion of competition within financial markets. This multifaceted approach ensures that consumers are not only safeguarded from unfair treatment and harmful practices, but that they can also access a wide range of financial products and services made available through a competitive marketplace.

By prioritizing consumer protection, the FCA seeks to ensure that customers have the confidence to engage with financial institutions and markets. This is particularly important in maintaining public trust in the financial system, which is crucial for its overall health and sustainability. Additionally, enhancing market integrity involves ensuring that markets function fairly and transparently, allowing for equitable access and preventing fraudulent activities. Promoting competition is vital as it drives innovation and improvements in service, ultimately benefiting consumers through better choices and prices.

In contrast, the other options do not align with the FCA's primary objectives. Increasing profitability for financial firms may lead to practices that compromise consumer interests. Facilitating mergers and acquisitions could potentially reduce competition and consumer choice if not regulated properly. Maintaining historical records of financial transactions, while important for transparency and accountability, is not a primary goal in itself but rather a function of broader regulatory efforts.