Which act established the FCA and the Prudential Regulation Authority?

The Financial Services Act 2012 is the correct answer because it was the legislation that established both the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) in the UK. This act marked a significant shift in the regulatory framework following the financial crisis of 2008, aimed at enhancing consumer protection, promoting competition in the interests of consumers, and ensuring financial stability. It led to a clear division of responsibilities between the FCA, which focuses on conduct regulation and consumer protection, and the PRA, which is responsible for the prudential regulation of banks, insurers, and investment firms.

The other acts mentioned do not encompass the establishment of these two regulatory bodies. While the Financial Services Act 2011 laid some groundwork for financial services regulation, the comprehensive framework to create the FCA and PRA was formally enacted with the 2012 act. The Financial Conduct Act 2013 and Financial Regulation Act 2014 do not exist in the context of UK financial regulation as defined, indicating that they cannot be credited with this significant regulatory development.