Deleted user
posted 3 years ago
There are two key regulators in the UK for ruling banking relation. The Prudential Regulation Authority ("PRA") is responsible for the financial safety and soundness of banks, while the Financial Conduct Authority ("FCA") is responsible for how banks treat their clients and behave in financial markets. Prudential issues such as capital and liquidity fall squarely within the PRA's remit, whereas conduct issues such as mis-spelling and market abuse are matters for the FCA. Both the PRA and FCA are interested in bank governance and systems and controls. This is because how banks organise their affairs and control their activities are relevant both to the financial health of a bank and the way it treats its clients and conducts itself in markets. The legislative framework for UK bank authorisations is set out in the Financial Services and Markets Act 2000 (“FSMA"). FSMA prohibits any person from carrying on a regulated financial services business without having the relevant permissions. Eventually, Banks are required to comply with a wide range of law and regulation, including the PRA Rulebook, the FCA Handbook, and various pieces of primary and secondary legislation, much of which derives from the UK's historic membership of the EU. Some of these regulatory requirements apply to all UK banks (including most requirements relating to prudential regulation, governance and systems and controls) whereas other requirements are triggered by carrying out certain activities or providing particular products and services
