The long anticipated FSA split into the PRA and FCA is likely to
take place in April 2013. To prepare the market, the BoE published
twin papers outlining The PRA's approach to banking
supervision and The PRA's approach to insurance
supervision in October. These papers, along with the FSA's
publication Journey to the FCA, shed more light on the new
UK framework for prudential and conduct regulation.
Firms should consider these papers carefully - they offer
important indicators of how the new regulators will focus their
resources. Understanding their approaches now will prove time well
spent when the regulators take up their new powers next April.
Common themes
The new regulatory authorities share complimentary objectives
and say that they will adopt a similar approach to regulation. Each
regulator's objectives recognise the importance of financial
stability in both retail and wholesale markets. They will both be
very interested in firms' cultures and how their
