Part I The Regulator

The Authority’s general duties

2 The Authority’s general duties.

1

In discharging its general functions the Authority must, so far as is reasonably possible, act in a way—

a

which is compatible with the regulatory objectives; and

b

which the Authority considers most appropriate for the purpose of meeting those objectives.

2

The regulatory objectives are—

a

market confidence;

b

public awareness;

c

the protection of consumers; and

d

the reduction of financial crime.

3

In discharging its general functions the Authority must have regard to—

a

the need to use its resources in the most efficient and economic way;

b

the responsibilities of those who manage the affairs of authorised persons;

c

the principle that a burden or restriction which is imposed on a person, or on the carrying on of an activity, should be proportionate to the benefits, considered in general terms, which are expected to result from the imposition of that burden or restriction;

d

the desirability of facilitating innovation in connection with regulated activities;

e

the international character of financial services and markets and the desirability of maintaining the competitive position of the United Kingdom;

f

the need to minimise the adverse effects on competition that may arise from anything done in the discharge of those functions;

g

the desirability of facilitating competition between those who are subject to any form of regulation by the Authority.

4

The Authority’s general functions are—

C1a

its function of making rules under this Act (considered as a whole);

b

its function of preparing and issuing codes under this Act (considered as a whole);

C2c

its functions in relation to the giving of general guidance (considered as a whole); and

d

its function of determining the general policy and principles by reference to which it performs particular functions.

5

General guidance” has the meaning given in section 158(5).