Which regulatory bodies were established by the Financial Services Act 2012?

The correct answer highlights the establishment of the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) as regulatory bodies under the Financial Services Act 2012. This Act was a significant piece of legislation in the UK that aimed to reshape the regulatory framework following the financial crisis of 2007-2008, enhancing the regulation of financial services firms and promoting resilience within the financial system.

The FCA was created to regulate the conduct of financial services firms, ensuring that they operate with integrity and act in the best interests of consumers. On the other hand, the PRA, which operates as a subsidiary of the Bank of England (BOE), is responsible for the prudential regulation of banks, insurers, and investment firms, focusing on the stability and safety of financial institutions.

Other bodies mentioned, such as the Financial Ombudsman Service (FOS) and the Bank of England, play important roles in the financial system; however, they were not established by the Financial Services Act 2012. The FOS provides consumers with a means to resolve complaints with financial service providers, while the Bank of England serves as the UK's central bank, particularly concerning monetary policy and financial stability. Thus, the specific focus of the question on regulatory bodies directly