What is the role of the Financial Conduct Authority (FCA)?

The role of the Financial Conduct Authority (FCA) is primarily centered on regulating financial markets and protecting consumers. This regulatory body aims to ensure that the financial market functions well by fostering competition, setting standards for financial firms, and promoting transparency. By doing so, the FCA helps to safeguard consumers against unfair practices and ensures that they are treated fairly by financial service providers.

In addition to consumer protection, the FCA supervises and regulates firms to ensure they comply with the law and maintain high standards of conduct. This includes monitoring how companies conduct their business and implementing changes or interventions where necessary to mitigate risks to consumers and the market.

The other options do not accurately capture the comprehensive responsibilities of the FCA. The development of financial products is generally the domain of financial firms rather than a regulatory body like the FCA. Providing loans is a function typically associated with banks and lending institutions, not the FCA. Evaluating the financial stability of insurance firms is one aspect of regulatory oversight but is not the primary focus of the FCA, as there are other regulatory bodies specifically tasked with that responsibility.