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UK banking regulation Q&A for practitioners: authorisation, prudential and conduct regimes, capital and resolution, ring-fencing, FSCS, M&A control, fintech/crypto, enforcement, and forthcoming reforms

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Banking regulation—United Kingdom—Q&A guide

This Practice Note provides a United Kingdom–specific Q&A guide to banking regulation, published within the Lexology Getting the Deal Through series by Law Business Research (law stated as at: 24 February 2023). Authors: 1 Crown Office Row—Edite Ligere

1. What are the principal governmental and regulatory policies that govern the banking sector?

Oversight of the UK banking sector rests chiefly with two regulators, with a further body setting system-wide policy:

  • The Prudential Regulation Authority (PRA), a part of the Bank of England, is responsible for prudential supervision, safeguarding the financial safety and soundness of banks.
  • The Financial Conduct Authority (FCA) regulates how banks conduct themselves in financial markets and in dealings with clients.
  • The Financial Policy Committee (FPC), operating within the Bank of England, functions as the macroprudential regulator for the UK financial system.

The legislative framework for UK bank authorisation is set out in the Financial Services and Markets Act 2000, as amended (FSMA 2000). FSMA 2000 also lists the statutory objectives of the PRA and the FCA. The PRA’s primary objective is to advance the safety and soundness of the firms it regulates...

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Web page updated on 22/05/2026

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