FCA VS PRA
The UK financial services regulatory supervision is completed by two bodies; the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA).
The FCA acts as watchdog for the conduct of all regulated and authorised firms and individuals (GT News, Apr 13). The FCA aims to;⦁ Protect consumers.
⦁ Enhance the integrity of the UK financial system.
⦁ Help maintain competitive markets and promote effective competition in the interests of consumers.
The FCA regulate 40% of all MiFID investment firms in the world. (ESMA Investment Firm Register).
The PRA sit under the Bank of England (BoE) and Financial Policy Committee (FPC) and are responsible for prudential matters ensuring financial stability of the larger organisations. (GT News, Apr 13)
The PRA has the statutory objective to “promote the safety and soundness of firms”. Its aims to avoid adverse effects on financial stability through prudential management of a firm’s business.
It is possible for firms and authorised persons to be dual regulated. All firms will be regulated by the FCA while banks, mutual societies, building societies and some larger trading organisations will have dual regulation from the PRA also. (GT News, Apr 13)