Which organization is ultimately accountable for regulating dual-regulated firms?

The Prudential Regulation Authority (PRA) is ultimately accountable for regulating dual-regulated firms. This organization is responsible for the prudential regulation of banks, building societies, insurers, and investment firms. Dual-regulated firms are those that are overseen by both the PRA and the Financial Conduct Authority (FCA), with the PRA focusing primarily on the stability and soundness of these firms.

The structure established by the Financial Services and Markets Act gives the PRA the mandate to ensure that firms have sufficient capital, manage risks effectively, and conduct their business in a manner that supports financial stability. Essentially, the PRA's oversight ensures that dual-regulated firms operate in a way that protects the overall health of the financial system in the UK, while the FCA is primarily focused on consumer protection and market integrity.

This division of responsibilities highlights the importance of the PRA in overseeing the structural and environmental stability of firms as part of the broader regulatory framework, which includes the FCA, and clarifies the role of each organization in regulating financial institutions.