Documents on UK Prudential Regulatory Authority and Financial Conduct Authority Published

Much anticipated approach documents have been published on the operation of the Prudential Regulatory Authority and the Financial Conduct Authority, two of the UK’s new financial regulators scheduled to take full effect in early 2013. In regards to the Financial Conduct Authority, which will be charged with oversight of conduct of business issues for all FSA-authorised firms, the FSA has outlined a number of changes in its current approach to conduct of business in its approach document. For example, the new authority will devote greater resources to analysing risks and cross-industry issues, backed by powers to ban products and promotions in the interests of consumers. The agency will also continue with much of the FSA’s existing work. Comments on this approach document should be submitted by December 14, 2012.

With respect to the Prudential Regulatory Authority, which will become the UK’s prudential regulator for systemically important institutions, the FSA and the Bank of England have published two approach documents, one for deposit-takers and investment firms and the other for insurance firms. Interested parties are encouraged to email their views on these approach papers to the FSA and the Bank of England, as well as to attend the public seminars being held on October 22, 2012 for deposit takers, investment firms, and insurers.