The Falkland Islands are a United Kingdom Overseas Territory by choice. Supreme authority is vested in Her Majesty The Queen and exercised by a Governor on her behalf, with the advice and assistance of the Executive and Legislative Councils.

The current Falkland Islands Constitution has evolved since 1985 and, under its terms, eight Legislative Councillors are elected every four years. The Legislative Council (LegCo) is chaired by a Speaker and includes two ex officio members: the Chief Executive and the Financial Secretary. The Attorney General and Commander British Forces South Atlantic Islands (CBFSAI) are also entitled to attend LegCo meetings. The Speaker is a non-elected position, chosen from the community by Councillors.

Each year the Legislative Councillors elect three of their number to stand as members of the Executive Council (ExCo), which includes the same two ex officio members who sit on LegCo. In addition, the Attorney General and CBFSAI may attend and speak on any matter. The Governor is obliged to consult ExCo in the exercise of his functions.

LegCo is empowered to pass legislation for the peace, order and good government of the Falkland Islands, subject to the approval of Her Majesty the Queen, acting through her Secretary of State for Foreign Affairs. LegCo meetings are held in public, usually bi-monthly.

Elected Councillors have a substantial measure of responsibility for the conduct of affairs concerning the Falkland Islands, although the Governor retains responsibility for various issues, particularly external affairs and defence. The Governor nevertheless consults regularly with Councillors on these issues.

No political parties are represented on the present Legislative Council, all members being elected as independents. There is no formal opposition. Each Councillor takes responsibility for a particular portfolio and works closely with the relevant departments, but does not have the role of a Minister; instead, questions of policy are considered by ExCo.

The Falkland Islands has a well established, independent judiciary. The Chief Justice of the Islands (non-resident) visits at least once a year to hear any serious or complex cases, appeals from the Magistrates Court, or those relating to the Constitutional rights of residents. The Senior Magistrate is based in the Islands and hears the majority of other cases, including criminal and civil matters, family and children cases and admiralty and commercial disputes. He also sits as Coroner to investigate any sudden or violent deaths that arise. The Falkland Islands enjoy almost crime free status with an annual police detection rate of over 95% on average.