Statutory objectives of the FCA

The FCA Handbook is geared towards enabling the FCA to fulfil its statutory objectives as a regulator. These three key objectives are:

• consumer protection – securing an appropriate level of protection for consumers;
• financial stability – protecting and enhancing the integrity of the UK financial system; and
• competition – promoting effective competition in the interests of consumers.

These operational objectives are in place to support the strategic objective of ensuring that the relevant markets function well.

In fulfilling its objectives, the FCA is guided by a number of principles of good regulation. These require the FCA to:

• operate with efficiency and economy;
• be proportionate – any burden or restrictions placed on an individual or activity must be proportionate to the expected benefit;
• ensure there is a desire for sustainable growth of the UK economy in both the medium and long term;
• consumers should take responsibility for their decisions;
• place proper emphasis on the role of senior management in meeting regulatory responsibilities;
• operate in a way that takes into account the different nature and objectives of different businesses;
• reinforce market regulation and improve consumer understanding by publishing relevant information about regulated persons; and exercise functions in an open and accessible way.

The FCA takes a risk-based and proportionate approach to regulation, based on their assessment of risks to the statutory objectives, taking into account the principles of good regulation.

The FCA’s objectives also:

• Provide political and public accountability;
• Govern the way that the FCA carry out their general functions – e.g. rule-making, giving advice and guidance and determining their general policy and principles; and
• Assist in providing legal accountability.