The frontrunner to be next UK prime minister has pledged a shake up of the City of London regulators

Liz Truss - the current frontrunner to succeed Boris Johnson as UK prime minister - is understood to be considering a “mega regulator” of the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA).

According to the Financial Times, she is said to be considering an immediate review of the roles and responsibilities of the UK’s financial regulators should she emerge victorious over former chancellor Rishi Sunak in the Conservative leadership race. 

It it goes ahead, it will be the biggest shake-up of the UK’s critical financial regulatory authorities in over a decade.

George Osborne, the former Labour chancellor, masterminded the separation of the UK’s prudential and conduct regulator in 2010, disbanding the Financial Services Authority (FSA), which he blamed for allowing the UK’s financial system lurch into the global financial crisis unchecked.

Its functions were split between the PRA and FCA, created in April 2013, and the PSR, which came two years later.