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FAIS Act FAIS Act and Subordinate Legislation
Which of the following best describes the relationship between the Prudential Authority and the FSCA under Twin Peaks?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) They are the same body with two names.
- b) Neither has any role in financial-sector regulation.
- c) The FSCA sets interest rates and the Prudential Authority licenses FSPs.
- d) The Prudential Authority focuses on the safety and soundness of institutions, while the FSCA focuses on market conduct and customer fairness.Correct
Why this is the answer
Twin Peaks splits regulation into prudential (safety and soundness of institutions — the Prudential Authority in the SARB) and conduct (market conduct and customer fairness — the FSCA). They are distinct bodies with complementary mandates.
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