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25 Cards in this Set
- Front
- Back
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What was the first major step in the development of a new regulatory regime which came in in June 1998? |
Responsibility for the regulation of the UK banking sector was transferred from the Bank of England to a new single regulator, the financial services authority (FSA) |
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Legislation as often resulted from |
Particular scandals of crisis (credit crunch) An increase in consumers financial awareness. The need to respond to changes in lifestyle. Development in business methods. Innovation in product design. Increase in complexity of financial products. |
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What is Prudential regulation? |
Chewing a business established and run on a sound financial basis. This aims to limit the risk of our business failing and, if failure does occur, to limit any adverse impact on consumers and the wider economy. |
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What are the FCA operational objectives? |
-To protect consumers. -To protect financial markets. -To promote effective competition. |
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A major clearing bank has its headquarters in London but operate in many other countries. Who is it regulated by? |
A financial provider of this nature would be regarded as systematically important. It would be regulated with the PRA in relation to its prudential status and the FCA in relation to its conduct of business. |
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What are the FCA's powers? |
- competition powers. - product intervention powers. - power of disclosure. - Power to take formal. |
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What is the CMA? |
Competition and market authority (CMA) |
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What is management Information? |
Data or statistics used to measure business performance and drive necessary change. |
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New consumer Duty |
Brought in 2021 by the FCA to get companies to place customers interest at the heart of the business. |
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What is market abuse? |
-Insider dealing (Has inside information about a company)
-Market manipulation. A person knowingly gives out false information.
-Money laundering. |
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What is whistle blowing? |
Employees able to report serious behaviour within the firm. They are protected by the public interest disclosure act, 1998. |
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Explain why regulation of the financial services sector is necessary? |
The weakness exposed by the 2007 credit crunch and a number of major miss selling scandals drove to changes to regulatory bodies in 2013 |
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What is conduct regulation? |
Companies that sell things to people need to make sure their product is good for the people and also treat the customers fair also. |
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What authority addresses risks that may threaten the stability of the economy as a whole? |
The financial policy committee (FPM) |
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Name three operational objectives of the FCA? |
Protect and consumers by securing an appropriate degree of protection. Protecting financial markets, by protecting and enhancing the integrity of the UK financial system. Promote effective competition for the interest of consumers. |
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Name four powers that the FCA can exercise in its regulation of business conduct? |
-Competition powers -Product intervention powers -Power of disclosure -Power to take formal action against misleading financial promotions. |
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The FCA handbook contains a section on redress. This section of the handbook is probably concerned with? |
Complaints and compensation |
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What phrases used by the FCA to summarise this requirement for effective communication to ensure fair treatment of customers? |
Information must be clear, fair and not misleading |
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Which body looks at economy in broad terms to identify and address risks that may threaten the stability of the whole or part of the economy? |
The financial policy committee |
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What is Prudential regulation? |
Regulation of banks, building societies and insurers to ensure the businesses are run on a sound financial basis, and to reduce the risk of financial mismanagement posing a risk to the financial system and economy. |
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What are conduct regulation? |
Regulation of the way in which themes develop, market and sell their product to customers. |
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Which body " looks the economy in broad terms to identify and dress risks that may threaten the stability of the whole or large parts of the economy"? |
The financial policy committee |
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What are the operational objectives of the FCA? |
To protect consumers- by securing and appropriate degree of protection. To protect financial markets- buy protecting and enhancing the integrity of the UK financial system. To promote effective competition- by promoting effective competition in the interests of the consumers. |
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What powers does the FCA have? |
Can enforce The prohibitations in a competition after 1998 on anti-competitive behaviour In financial services. - Can carry out market studies and Investigations. -Can ban, impose financial products.
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What is the FCA handbook? |
Details the FCAs requirements of firms that operate in the financial services industry and consists of mainly of rules and guidance. |
