27 January 2012
The draft memorandum of understanding (MoU) between the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) sets out a high level framework for how the two regulators will work together within the new regulatory system set out in the Financial Services Bill. It has been jointly produced by the Bank of England and Financial Services Authority.
It will be vital that the two authorities pursue their own mandates, respecting the UK’s Twin Peaks micro regulatory system. But it will also be essential that they coordinate activities in some areas, and cooperate in others. The MoU sets out these arrangements to help ensure they are effective and efficient.
The MoU will remain in draft form until the Financial Services Bill has completed its parliamentary process.
The MoU is published in draft to help Parliamentarians, firms, consumers and others understand what is proposed as the Financial Services Bill passes through the legislative process. The staff at the Financial Services Authority and the Bank of England will take account of any comments that interested parties may have via email.
Draft memorandum of understanding between the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) [pdf]
Draft annexes for the FCA/PRA MoU [pdf]
Further information
The Financial Services Bill was introduced to Parliament on 26 January 2012.
HM Treasury has also published drafts of specific MoUs which Parliament and stakeholders have asked to see during the course of the Bill’s passage. The MoUs are available on their website.
