Which of the following is a key duty of the FCA?

The key duty of the FCA is to protect consumers and maintain market integrity, making it vital for the overall functioning of the financial markets. This responsibility encompasses ensuring that consumers are treated fairly by financial services firms and can access appropriate products, which includes promoting competition to benefit consumers. Additionally, maintaining market integrity involves overseeing the financial system to prevent fraud and other unethical practices, ensuring that markets operate smoothly and efficiently.

The focus of the FCA on consumer protection also aligns with its broader objectives of fostering confidence in the financial system, which is crucial for economic stability. By prioritizing consumer welfare, the FCA helps to build trust in financial institutions and maintains a healthy competitive environment.

This key duty distinguishes the FCA from options like issuing loans or guaranteeing profits, which do not align with the regulatory framework and responsibilities assigned to the FCA. Instead, its role is supervisory and regulatory, with a focus on oversight and standards rather than transactional banking activities or profit assurance.