The Prudential Regulation Authority (PRA), headed by Andrew Bailey, will supervise banks, insurers and large investment firms. It is part of the Bank of England (BoE).

The Financial Conduct Authority (FCA), headed up by Martin Wheatley, will take over much of the FSA’s regulation responsibilities and will have sole oversight of IFAs, investment advisers and brokers.

Its remit includes protecting investors, policing the markets and promoting competition.

“I characterise it as a move away from looking in the rear-view mirror,” Mr Wheatley told the FT.

“The conversations will be much more geared towards . . . tell us about your growth plans; where do you see your business moving to over the next six months [and] where do you see the risks in those areas?”