The challenges of dual regulation

In some areas the delineation between prudential and conduct of business matters may be clear-cut, but in others such as authorisation or assessment of governance arrangements it is clear that there will be an overlap in the interests of the Prudential Regulation Authority and Financial Conduct Authority. The following is an excerpt from a longer article entitled, ‘The new approach to insurance supervision’, available on the Compliance Monitor website. By Andy Moore, Mike Vickery and Kareline Daguer.

Andy Moore is a partner, Mike Vickery is a director and Kareline Daguer a senior manager at PwC. Contact them at andy.moore@uk.pwc.com, mike.p.vickery@ uk.pwc.com and kareline.daguer@uk.pwc.com.

Insurers, banks and some large investment firms will be subject to dual regulation with the PRA being responsible for prudential regulation and the FCA being responsible for conduct of business matters.