What strategies does the FCA promote to enhance competition in financial markets?

The FCA promotes reducing entry barriers and encouraging consumer switching as strategies to enhance competition in financial markets. By lowering entry barriers, the FCA facilitates the entry of new firms into the market, which increases the number of choices available to consumers. This heightened competition can lead to more innovative products, better services, and lower prices. Similarly, promoting consumer switching encourages customers to move between services, which compels existing firms to improve their offerings and pricing to retain and attract clients. This dual approach of empowering consumers and inviting new competitors helps maintain a vibrant and competitive financial market, ultimately benefiting consumers with more and better options.

Other strategies, such as encouraging mergers, would typically concentrate market power rather than enhance competition, while limiting the number of firms or mandating higher fees would likely stifle competition and reduce consumer choice.