Financial Conduct Authority (FCA) UK Regulation Sample Exam

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Who is primarily responsible for the conduct of business and supervision of financial firms in the UK?

The Bank of England
The Prudential Regulation Authority
The Financial Conduct Authority
The Financial Reporting Council

The correct answer is: The Financial Conduct Authority

The Financial Conduct Authority (FCA) is primarily responsible for the conduct of business and supervision of financial firms in the UK. This includes overseeing the behavior of financial institutions and ensuring that they adhere to high standards of conduct, protecting consumers and maintaining market integrity. The FCA’s responsibilities involve regulating a wide range of financial services and firms, ensuring fair treatment of customers, and promoting competition in the interests of consumers. The other entities mentioned, while important in the financial ecosystem, have different roles. The Bank of England is primarily focused on monetary policy and financial stability rather than direct oversight of business conduct within firms. The Prudential Regulation Authority (PRA) is responsible for the prudential regulation of banks, insurers, and investment firms, focusing on financial soundness and the stability of individual firms rather than their conduct in business practices. The Financial Reporting Council governs accounting and auditing standards, which is crucial for corporate governance and transparency but does not encompass the broader supervisory and conduct-focused role of the FCA.