On 1 April 2013, the Financial Services Authority ceased to exist and was replaced by:
- The Prudential Regulation Authority (PRA), responsible for the prudential regulation of deposit-takers and some investment firms;
- The Financial Conduct Authority (FCA), responsible for market regulation and conduct regulation of all firms and for the prudential regulation of those firms not regulated by the PRA;
- An over-arching Financial Policy Committee (FPC) charged with identifying, monitoring and taking action to remove or reduce systemic risks to the stability of the financial system.
The new regime came into force following the introduction of the Financial Services Act 2012, which amended the Financial Services and Markets Act and which received Royal Assent in December 2012. This piece of legislation brought to fruition plans announced back in 2010, which looked to make fundamental changes to UK financial services regulation.
The changes mean that some firms will be in the new position of being "dual regulated", i.e. being regulated by both the PRA and the FCA, for financial services regulation. This will have practical implications in a number of areas for firms, including the approval of individuals.
Those firms that continue to be regulated by one regulator (the FCA) will also have to adapt to a new, more intrusive supervisory style.
Additionally, the changes have required both new regulators to publish their own separate Handbooks. Whilst much of their content will be based on the FSA's Handbook, there will be changes and updates to rules which firms will need to monitor and comply with. These changes are alongside regulatory change at European and international level.
Bovill can assist firms in meeting the challenges of being authorised and regulated under the new regulatory structure.