Which entities are jointly regulated by the FCA and PRA?

The joint regulation by the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) primarily applies to entities that play a critical role in maintaining the stability and integrity of the financial system, particularly in terms of consumer protection and sound financial practices. Deposit takers, which include banks and building societies, are subjected to this dual regulatory oversight because they hold significant consumer deposits and are integral to the overall financial infrastructure.

The PRA focuses on the prudential regulation, ensuring that these entities maintain adequate capital reserves and risk management practices to safeguard against financial distress. Meanwhile, the FCA is concerned with conduct regulation, overseeing how these institutions interact with customers, ensuring fair treatment, and maintaining confidence in the financial sector. This combined approach helps to mitigate systemic risk while also protecting consumer interests.

In contrast, financial advisors, insurance brokers, and investment funds do not face the same level of dual regulation between these two authorities, as their regulatory oversight may involve either the FCA alone or be structured differently under other regulations. Thus, deposit takers stand out as the entities that require both prudential and conduct regulation, affirming the correct choice.