What is the role of the FCA's Handbook?

The FCA's Handbook serves as an essential framework that outlines the regulations, rules, and guidelines that firms operating in the financial services industry must adhere to. It is designed to ensure that these firms conduct their business in a way that is fair and transparent, protecting both consumers and the integrity of the financial market. The Handbook covers various aspects, including conduct of business, prudential standards, and compliance requirements.

The existence of this structured set of rules helps regulated firms understand their obligations and the expectations set by the FCA. It fosters trust and accountability within the financial system, ensuring that firms operate under consistent standards that aim to uphold market integrity, promote competition, and protect consumers.

The focus of the Handbook on regulations sets it apart from options that imply services like providing financial advice to consumers, conducting training programs for staff, or evaluating the performance of financial institutions, which are not its primary functions. Instead, the Handbook is a critical tool in the regulatory framework, guiding firms in adhering to compliance requirements essential for maintaining a stable financial environment.