Interaction between the PRA, FCA and FPC
Interaction between the PRA, FCA and FPC

The following Financial Services practice note provides comprehensive and up to date legal information covering:

  • Interaction between the PRA, FCA and FPC
  • UK regulatory structure
  • Determining regulatory boundaries
  • Co-ordination between the FPC, FCA and PRA
  • Purpose
  • General mechanisms
  • Memorandum of understanding
  • Statutory duty of co-ordination
  • Enforcement
  • Cross membership of boards
  • More...

BREXIT: 11pm (GMT) on 31 December 2020 (‘IP completion day’) marked the end of the Brexit transition/implementation period entered into following the UK’s withdrawal from the EU. Following IP completion day, key transitional arrangements come to an end and significant changes begin to take effect across the UK’s legal regime. This document contains guidance on subjects impacted by these changes. Before continuing your research, see: Brexit and financial services: materials on the post-Brexit UK/EU regulatory regime.

This Practice Note looks at how the Prudential Regulation Authority (PRA), the FCA and the Financial Policy Committee (FPC) interact with each other. For guidance on each individual body see:

  1. UK regulators—financial services—overview

UK regulatory structure

On 19 December 2012 the Financial Services Act 2012 (FSA 2012) received Royal Assent and came into force on 1 April 2013. It amended existing financial services legislation, particularly the Financial Services and Markets Act 2000 (FSMA 2000), abolished the Financial Services Authority (FSA) and gave the Bank of England (BoE) responsibility for financial stability, bringing together macro and micro prudential regulation. The regime created by the FSA 2012 established three bodies with the following responsibilities:

  1. the FPC—a macro-prudential authority, within the BoE responsible for monitoring and responding to systemic risks (see Practice Note: Financial Policy Committee—essentials for further information)

  2. the PRA—responsible for significant prudential regulation (see Practice Note: Prudential Regulation Authority—powers for further information), and

  3. the FCA—responsible

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