It is now over a year since the Financial Services Authority was abolished and its responsibilities split between two new UK regulators – the Prudential Regulation Authority (“PRA”) and the Financial Conduct Authority (“FCA”). The new twin peaks system, under which banks and insurers are subject to supervision by the PRA for prudential issues and the FCA for conduct issues, is still in the process of bedding in, with both regulators still developing their individual regulatory styles and approaches.
In this article Nathan Willmott and Polly James focus upon two key developments in the PRA’s and the FCA’s supervision of firms in 2014: the PRA’s proposed new Fundamental Rules for firms; and the FCA’s new Supervisory Framework documents. They conclude with some observations on how the dual supervisory regime is working in practice.
Read the full article: Supervision under the Twin Peaks regime