Which of the following statements is true regarding competition as an FCA objective?

The statement that competition as an FCA objective aims to enhance consumer choice and innovation is accurate. The Financial Conduct Authority (FCA) actively promotes competition to ensure that consumers have a variety of options available to them in the financial services market. By fostering competition, the FCA encourages firms to innovate and improve their services, leading to better products and pricing for consumers.

This objective is rooted in the belief that when businesses compete effectively, it benefits the entire market by driving improvements and ensuring a broader range of choices for consumers. This emphasis on consumer choice is integral to the FCA’s role in regulating and guiding the behavior of financial firms, ensuring that they operate in a manner that ultimately serves the best interests of the public.

Other considerations, such as limiting market participation or focusing solely on operational costs, do not accurately reflect the FCA's commitment to a competitive marketplace. Additionally, the goal of enhancing competition is applicable to firms of all sizes, not just large companies, making the correct choice focused on fostering an inclusive and innovative environment for all consumers.