Supervision

Supervision

This overview is a guide to the Lexis+® UK Financial Services content within the Supervision subtopic, with links to the appropriate materials.

This section covers the supervision process under the prudential regulation of the PRA and conduct regulation carried out by the FCA.

'Twin peaks' regulatory structure

The financial crisis of 2007–08 led to a wholesale revision of the regulatory architecture in the UK. The replacement system, which took effect on 1 April 2013, has been labelled 'twin peaks' regulation. The twin peaks regulatory structure involves separating prudential regulation (carried out by the Prudential Regulatory Authority (PRA)) and conduct regulation (carried out by the Financial Conduct Authority (FCA)).

PRA

The PRA is a subsidiary of the Bank of England (the Bank) and regulates prudential matters for insurers, deposit takers and certain systemically important investment firms. It has a single objective—to promote the safety and soundness of regulated firms. It also contributes to the promotion of the stability of the UK financial system. It seeks to minimise any adverse effects of firm failure on the UK financial system and to ensure that firms carry on their

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Latest Financial Services News

FMSB publishes Final Standard for Client Onboarding: Documentation and Processes

The Financial Markets Standards Board (FMSB) has published its final ‘Standard for Client Onboarding: Documentation and Process’ and related Annexes. The Standard seeks to harmonise the data and documents required from clients, as well as codifying elements of best practice in the interaction between clients and onboarding firms, to create greater efficiency. Drafted to allow onboarding firms to continue to fully apply the UK’s Risk Based Approach to KYC, the Standard provides more granular guidance for the practical implementation of the UK Money Laundering Regulations (UK MLRs). The FMSB will continue to monitor developments in the UK MLRs and other applicable regulation and guidance and update the Standard as required.

BoE welcomes API Panel of Expert recommendations to enhance cross-border payments

The Bank of England (BoE) has welcomed recommendations by the API Panel of Experts (APEX) for the development of payment APIs. The recommendations were published in the October 2024 report to the G20 by the Bank for International Settlements’ Committee on Payments and Market Infrastructures (CPMI): ‘Promoting the harmonisation of application programming interfaces to enhance cross-border payments: recommendations and toolkit’. The BoE views the recommendations and their associated action items as a timely and practical push for increased harmonisation of APIs in cross-border payments which is in line with the objectives of the G20’s cross-border payments programme.

PRA corrects error in Solvency II standard formula mass lapse life underwriting risk rule

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FCA publishes Handbook Notice 125

The Financial Conduct Authority (FCA) has published Handbook Notice 125 which describes the changes made to the FCA Handbook and other materials by the FCA Board and its Executive Regulation and Policy Committee under their legislative and statutory powers on 9 December 2024, 13 December 2024 and 19 December 2024. The changes effected through several instruments take effect on various dates commencing on 20 December 2024.

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