The PRA checks whether UK financial firms are financially sound. The FCA checks how they treat customers. Most large firms answer to both.
Last reviewed: 1 July 2026
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REGULATIONS |
The Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) are both UK financial regulators, but they check different things. The PRA is concerned with whether a firm stays financially sound. The FCA is concerned with how a firm treats its customers and competes in the market.
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KEY FACTS
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What each regulator is actually checking
The PRA supervises whether a firm holds enough capital, manages risk properly, and could remain solvent under stress. The FCA supervises whether a firm sells products fairly, discloses information properly, and treats customers reasonably. A firm can pass one regulator's standards while still falling short of the other's.
Why some firms are dual-regulated
Banks, building societies, credit unions, and insurers are generally dual-regulated: the PRA checks their financial soundness while the FCA checks their conduct. Smaller firms, such as most insurance brokers and financial advisers, are typically regulated by the FCA alone, since prudential risk from these firms is lower.
PRA vs FCA by scope and tools
| Dimension | PRA | FCA |
|---|---|---|
| Type of regulation | Prudential (financial soundness) | Conduct (customer treatment, competition) |
| Parent body | Bank of England | Independent public body |
| Approx. firms supervised | 1,500 | 42,000 |
| Example tool | Capital adequacy requirements | Consumer Duty rules |
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Approximate scale of firms supervised PRA: 4% FCA: 100% |
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This article is general information, not financial or legal advice. Rules and limits can change: always check the current position with the regulator or scheme concerned before relying on any figure here. |
Which regulator handles a mis-sold insurance policy complaint?
Conduct issues such as mis-selling are generally handled through the FCA's rules and, for individual complaints, the Financial Ombudsman Service, not the PRA.
Can a firm be authorised by the FCA but not the PRA?
Yes, many firms, including most insurance intermediaries, are FCA-authorised only and are not dual-regulated by the PRA.
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Related Guides |
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