Financial Services and Markets Act 2000, section 1B

The FCA's general duties

PART 1A The Regulators

(1)In discharging its general functions the FCA must, so far as is reasonably possible, act in a way which—

(a)is compatible with its strategic objective, and

(b)advances one or more of its operational objectives.

(2)The FCA's strategic objective is: ensuring that the relevant markets (see section 1F) function well.

(3)The FCA's operational objectives are—

(a)the consumer protection objective (see section 1C);

(b)the integrity objective (see section 1D);

(c)the competition objective (see section 1E).

(4)The FCA must, so far as is compatible with acting in a way which advances the consumer protection objective or the integrity objective, discharge its general functions in a way which promotes effective competition in the interests of consumers.

[F12 (4A)When discharging its general functions in the way mentioned in subsection (1) the FCA must, so far as reasonably possible, act in a way which, as a secondary objective, advances the competitiveness and growth objective (see section 1EB).F12]

(5)In discharging its general functions the FCA must have regard to—

(a)the regulatory principles in section 3B, and

(b)the importance of taking action intended to minimise the extent to which it is possible for a business carried on—

(i)by an authorised person or a recognised investment exchange, or

(ii)in contravention of the general prohibition,

to be used for a purpose connected with financial crime.

(6)For the purposes of this Chapter, the FCA's general functions are—

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

[F13 (aa)its function of making technical standards in accordance with Chapter 2A of Part 9A;F13]

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

(c)its functions in relation to the giving of general guidance under this Act (considered as a whole), and

(d)its function of determining the general policy and principles by reference to which it performs particular functions under this Act.

(7)Except to the extent that an order under section 50 of the Financial Services Act 2012 (orders relating to mutual societies functions) so provides, the FCA's general functions do not include functions that are transferred functions within the meaning of section 52 of that Act.

F14 (7A). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(8) “General guidance” has the meaning given in section 139B(5).

Read section 1B in the full Act → Definitions (9) Cases (13)

Definitions used in section 1B

functions

(4) Neither section 2AB(3)(d) nor the definition of “functions” in paragraph 1 applies for the purposes of sub-paragraph (2).

Defined in Sch.1ZB para.31(4) · see it in the full Act

(2A) The functions referred to in sub-paragraph (1)(a) include functions of the FCA under the Competition Act 1998 or the Enterprise Act 2002 as a result of Part 16A of this Act ; but this sub-paragraph is not to be regarded as limiting the effect of the definition of “functions” in paragraph 1.

Defined in Sch.1ZA para.23(2A) · see it in the full Act

(4) Neither section 1A(6)(d) nor the definition of “functions” in paragraph 1 applies for the purposes of sub-paragraph (2).

Defined in Sch.1ZA para.23(4) · see it in the full Act
the FCA

(2) The Financial Conduct Authority is in this Act referred to as “the FCA”.

Defined in s.1A(2) · see it in the full Act

“the FCA” means the Financial Conduct Authority;

Defined in s.417(1) · see it in the full Act
consumers

(1) In sections 1B to 1E “consumers” means persons who —

(a) who use, have used or may use—

(i)regulated financial services, or

(ii)services that are provided by persons other than authorised persons but are provided in carrying on regulated activities, who

(b) who have relevant rights or interests in relation to any of those services,

(c) who have invested, or may invest, in financial instruments, ...

(d) who have relevant rights or interests in relation to financial instruments , or

(e) who have rights, interests or obligations that are affected by the level of a regulated benchmark ; or

(f)in respect of whom a person carries on an activity which is specified in article 89G of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (seeking out etc claims) whether that activity, as carried on by that person, is a regulated activity, or is, by reason of an exclusion provided for under the 2001 Order or the 2000 Act, not a regulated activity.

Defined in s.1G(1) · see it in the full Act
integrity

(3) In this Schedule, References to “integrity” of the dfnUK financial system are to be read in accordance section 1D(2).

Defined in Sch.6 para.1A(3) · see it in the full Act
authorised person

“authorised person” has the meaning given in section 31(2);

Defined in s.417(1) · see it in the full Act

(2) In this Act “authorised person” means a person who is authorised for the purposes of this Act.

Defined in s.31(2) · see it in the full Act
recognised investment exchange

“recognised CSD”, “recognised clearing house” and “recognised investment exchange” have the meaning given in section 285;

Defined in s.417(1) · see it in the full Act

(a) “recognised investment exchange” means an investment exchange in relation to which a recognition order is in force;

Defined in s.285(1) · see it in the full Act
general prohibition

“general prohibition” has the meaning given in section 19(2);

Defined in s.417(1) · see it in the full Act
rule

“rule” means a rule made by the FCA or the PRA under this Act;

Defined in s.417(1) · see it in the full Act
General policy

(8) “General policy” means a policy evidencing a contract which, if it had been effected by the transferee, would have constituted the carrying on of a regulated activity consisting of the effecting of contracts of general insurance.

Defined in Sch.12 para.10(8) · see it in the full Act

Cases considering section 1B (13)

Ian Golding & Ors, R (on the application of) v Financial Services Compensation Scheme Limited

[2026] EWHC 2337 (Admin) · 11 September 2026Interprets

Consumer protection was recognised as a primary FCA operational objective, but not as an absolute objective overriding coherent limitation rules. (see paras [58]-[59])

The All-Party Parliamentary Group on Fair Banking Group, R (on the application of) v The Financial Conduct Authority

[2025] EWHC 525 (Admin) · 7 March 2025Interprets

The court used the FCA’s strategic and operational objectives, including consumer protection, as the statutory framework for assessing rationality and the scope of regulatory discretion. (see paras [6], [143]-[145])

Grout, R (On the Application Of) v Financial Conduct Authority

[2015] EWHC 596 (Admin) · 9 March 2015Defines

The court identified the FCA’s duty to act, so far as reasonably possible, compatibly with its strategic objective and to advance one or more operational objectives. This framed the statutory purpose against which the decision to terminate the investigation was reviewed (see para [21]).

What each judgment says about section 1B is in the case-law panel in the full Act.

Amendments and notes

6 notes from legislation.gov.uk

Amendments

  1. F12S. 1B(4A) inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), ss. 25(2), 86(3); S.I. 2023/779, reg. 4(p)
  2. F13S. 1B(6)(aa) inserted (26.10.2018) by The Financial Regulators Powers (Technical Standards etc.) (Amendment etc.) (EU Exit) Regulations 2018 (S.I. 2018/1115), regs. 1(2), 7(3)
  3. F14S. 1B(7A) omitted (1.1.2019) by virtue of Financial Guidance and Claims Act 2018 (c. 10), s. 37(5), Sch. 3 para. 7; S.I. 2018/1330, reg. 2(g)(i)

Modifications

  1. C34S. 1B applied (with modifications) (5.4.2024) by The Data Reporting Services Regulations 2024 (S.I. 2024/107), regs. 1(2), 15; S.I. 2023/1382, reg. 4(c)
  2. C35S. 1B(4) restricted (26.7.2013) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013 (S.I. 2013/1881), arts. 1(4), 61(2)
  3. C36S. 1B(4) restricted (E.W.S.) (29.11.2018 for specified purposes, 1.4.2019 in so far as not already in force) by The Financial Services and Markets Act 2000 (Claims Management Activity) Order 2018 (S.I. 2018/1253), arts. 1(2)(3), 84(2)