Which regulatory authority is primarily responsible for the fit and proper test in the UK?

The authority primarily responsible for the fit and proper test in the UK is the Prudential Regulation Authority (PRA). This test is crucial in assessing whether individuals involved in senior management positions and governing bodies of regulated firms are suitable to perform their roles. The PRA evaluates factors such as honesty, integrity, competence, capability as well as the financial soundness of individuals.

While the Financial Conduct Authority (FCA) also plays a significant role in ensuring that individuals are fit and proper, it focuses more on the conduct of businesses in relation to the financial markets and consumer protections. The PRA, as part of its mandate, specifically oversees the prudential regulation of banks, insurers, and investment firms, which includes the implementation of the fit and proper test.

HM Treasury primarily deals with the economics of the UK government's finances and does not directly conduct fit and proper assessments. The Bank of England, while it includes the PRA, is overall focused more on monetary policy and financial stability rather than on the assessment of individuals for fitness and propriety. Therefore, the PRA is the correct choice as it has the direct responsibility for implementing this crucial assessment for senior roles within financial institutions.