4 The Constitution and Powers of the UK Regulators

Subject(s):

Financial Services and Markets Act 2000 — Regulated activities — Bank of England — Financial ombudsman service

This chapter explains the interrelated powers and responsibilities of the various UK bodies involved in the new system of financial services regulation. The role, constitution, and powers of the Bank of England and the Financial Policy Committee (FPC) are reviewed. The policies, statutory framework, and constitutions of the Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA) are assessed. The provisions—the eight regulatory principles (3B), the principles of good governance (3C), the requirement to coordinate with one another, and requirement to cooperate with any treasury-ordered enquiry into serious regulatory failures—which apply to both the PRA and FCA are examined.