Evolution of UK financial regulation

Who regulates financial services in the UK, how does that body relate to the central bank, and how did the arrangement come about?

Today the FCA handles conduct and the PRA, part of the Bank of England, handles prudential supervision. In 1997 the Bank of England gained independence over interest rates while banking supervision moved to the new Financial Services Authority, a single regulator under a tripartite system with the Treasury. After the 2007–08 crisis exposed gaps, the FSA was abolished in 2013: prudential regulation returned to the Bank via the PRA, conduct went to the FCA, and the Bank's Financial Policy Committee took on macroprudential oversight.