Which authority was created by the Financial Services Act 2012 alongside the FCA?

The authority established by the Financial Services Act 2012, alongside the Financial Conduct Authority (FCA), is the Prudential Regulation Authority (PRA). The creation of the PRA marked a significant shift in the regulation of financial services in the UK, focusing specifically on the prudential regulations of banks, insurance companies, and investment firms. It operates under the Bank of England and plays a crucial role in ensuring the safety and soundness of these institutions to maintain financial stability within the banking and insurance sectors.

The Financial Services Compensation Scheme (FSCS), the Financial Ombudsman Service, and the Bank of England, while important components of the financial regulatory landscape in the UK, did not originate from the Financial Services Act 2012 like the PRA did. The FSCS serves as a safety net for consumers if financial services firms fail, while the Financial Ombudsman Service provides an independent service for consumers to resolve disputes with financial businesses. The Bank of England serves as the central bank of the UK but was not established as a result of this specific legislation. These entities focus on different aspects of financial regulation and consumer protection rather than the prudential oversight responsibilities that define the PRA's functions.