What organization is primarily responsible for financial regulation in the UK?

The Financial Conduct Authority (FCA) is the principal organization responsible for regulating financial markets and firms in the UK. Established in 2013, the FCA's main duties include ensuring that financial markets operate effectively and transparently, protecting consumers, and promoting competition among financial service providers. The FCA oversees a wide range of financial institutions, including banks, investment firms, and insurance companies, to ensure they adhere to legal and ethical standards.

In particular, the FCA is focused on consumer protection and has the authority to take action against businesses that engage in misleading practices or do not treat their customers fairly. This makes it integral to maintaining trust in the UK financial system.

While the Bank of England plays a crucial role in monetary policy and financial stability, it is distinct from the FCA, which specializes in the conduct of financial firms. The Office of Fair Trading (OFT) was dissolved in 2014, and its functions were absorbed into the FCA, making it irrelevant in the context of current financial regulation. The Treasury, while responsible for government economic and financial policy, does not directly regulate financial markets.