Who has the authority to enforce regulatory actions against financial firms?

The Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) hold the authority to enforce regulatory actions against financial firms in the United Kingdom. The FCA is responsible for regulating conduct in financial markets, ensuring that financial firms operate fairly and transparently, protecting consumers, and promoting competition. The PRA, on the other hand, focuses on the prudential regulation and supervision of banks, insurers, and investment firms, ensuring their stability and resilience.

Together, these two bodies operate under the Financial Services and Markets Act 2000 (FSMA) and other relevant legislation, providing a robust framework to oversee financial institutions' operations and enforce compliance with regulations. This division of responsibilities allows for a comprehensive approach to financial regulation, addressing both consumer protection and financial stability.

Other options, such as the Bank of England, the Parliament of the United Kingdom, and the Office of Fair Trading, do not have the same direct authority concerning the oversight of financial institutions. The Bank of England has a broader role in economic policy and monetary stability, while Parliament enacts laws that govern financial services but does not directly enforce regulatory actions. The Office of Fair Trading, which was dissolved in 2014, had a primary role in consumer protection and competition law but was