Air carrier flight crew reported a TCAS TA and RA while on approach. The First Officer complied with the RA at 800 ft AGL even though company SOP allowed for a continued approach with traffic in sight.

Narrative

On approach to Runway 16R as advised by ATC we had a traffic abeam us approaching Runway 16L. We received a TA and I advised my (First Officer) FO I had traffic in sight that it was no factor and that I will maintain visual with them so my FO can continue the approach. By the FAF for Runway 16R (using ILS Runway 16R as a backup for a visual) we received an RA while traffic was no factor my FO began the 'climb' commanded by the TCAS which switched to a TCAS RA 'descend'. During the descent the TCAS advised clear of conflict when the airplane was 800 ft. AGL. Given our configuration; energy state; and the startle and surprise response from the FO; I determined that we were unstable and that we should discontinue the approach. I took over controls and began a go around to 2000 ft. straight ahead and requested a new visual approach. Landed without event and debriefed the event. The FO was too nervous and hyper focused. Their initial response was to follow the RA even though we had traffic in sight. FO did not consider how close the airplane was to the ground regardless of the RA. Train pilots on simultaneous approaches where continuing could be required given visual separation. My FO admitted not considering the visual provision in our Standard Operating Procedues allowing continuing the approach with traffic in sight and just went ahead for an RA maneuver.