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29 Cards in this Set
- Front
- Back
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What else are the EU concerned with developing other than regulatory standards? |
A single market in financial services across Europe. |
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What are the main purposes and aims of regulations? |
1) Maintain and promote fairness, efficiency, competitiveness, transparency and orderliness 2) Promote understanding by the public of the operation and functioning of the financial services industry 3) Provide protection for investors holding financial products 4) Minimise crime and misconduct in the industry 5) Reduce systematic Risk 6) Assist in maintaining the markets financial stability |
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As well as ensuring the EU has world class regulatory standards what else do the EU concerned with? |
The development of a single market in financial services across Europe |
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What is the tiered approach to creating and implementing regulations known as ? |
The Lamfalussy process |
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What is the first step of the Lamfalussy process? |
Level 1 It involves the European council and European Parliament adopting in a co decision procedure a piece of legislation a framework directive. This establishes the core elements of regulation and sets guidelines for its implementation |
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What is the second step of the Lamfalussy process? |
Level 2 Sector specific committees and regulators advise on the technical detail. The European Commission, based on the advice, then issues rules at a detailed level which do not have to go through the co-decision. The rules are only binding if they are a regulation. |
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What is the second step of the Lamfalussy process? |
Level 2 Sector specific committees and regulators advise on the technical detail. The European Commission, based on the advice, then issues rules at a detailed level which do not have to go through the co-decision. The rules are only binding if they are a regulation. |
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What is the third step of the Lamfalussy process? |
Level 3 National regulators work on co-ordinating new regulations with other nations |
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What is the second step of the Lamfalussy process? |
Level 2 Sector specific committees and regulators advise on the technical detail. The European Commission, based on the advice, then issues rules at a detailed level which do not have to go through the co-decision. The rules are only binding if they are a regulation. |
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What is the third step of the Lamfalussy process? |
Level 3 National regulators work on co-ordinating new regulations with other nations |
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What is the forth step of the Lamfalussy process? |
Level 4 Involves compliance and enforcement of the new rules and laws at national level by European Commission |
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What was this process used to introduce? |
Markets in Financial Instruments Directive (MiFID) This has introduced more extensive rules and regulations regarding the conduct of business and organisation of firms with the financial industry. |
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What is does the term 'passport' refer to? |
It's aimed to remove the hurdle of cross border business by letting a company who is authorised to provide investment services in one member state also has the right to do so in others without requiring further authorisation. |
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Who guides the European Commission in implementing legislation to securities markets? |
European securities and markets authority (ESMA) |
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When did the Financial Services and Markets Act 2000 (FSMA) come into force? |
1 December 2001 |
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Under the FSMA who has responsibility for regulating the finance services industry? |
The FSA |
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Under the FSMA who has responsibility for regulating the finance services industry? |
The FSA |
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As of April 1st 2013 the government gave responsibility for prudential regulations to who? |
PRUDENTIAL REGULATION AUTHORITY |
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Under the FSMA who has responsibility for regulating the finance services industry? |
The FSA |
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As of April 1st 2013 the government gave responsibility for prudential regulations to who? |
PRUDENTIAL REGULATION AUTHORITY |
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Who is responsible for market conduct? |
FINANCIAL CONDUCT AUTHORITY |
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Who is responsible for regulating the stability and resistance of financial systems. |
FINANCIAL POLICY COMMITTEE (FPC) |
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Who is responsible for the prudential regulations of large firms? |
PRUDENTIAL REGULATION AUTHORITY (PRA) |
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Who is responsible for the prudential regulations of large firms? |
PRUDENTIAL REGULATION AUTHORITY (PRA) |
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What is the PRA's main objective? |
To enhance financial stability and promote safety in firms. |
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Who do the financial conduct authority regulate? |
Firms in retail and wholesale financial markets who are not large enough to fall under the PRA. |
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What are the 11 principles of business? |
1) Integrity 2) Skill, care and diligence 3) Management and control 4) Financial prudence 5) Market conduct 6) Customers interest 7) Communications with clients 8) Conflicts of interest 9) Customers: relationships of trust 10) Clients assets 11) Relations with regulators |
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What are the 11 principles of business? |
1) Integrity 2) Skill, care and diligence 3) Management and control 4) Financial prudence 5) Market conduct 6) Customers interest 7) Communications with clients 8) Conflicts of interest 9) Customers: relationships of trust 10) Clients assets 11) Relations with regulators |
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What are the 7 statements of principle for approved persons? |
1) Act with integrity 2) Act With due skill, care and diligence 3) Observe proper standards of market conduct 4) Deal with regulators in an open and co-operative way 5) Take reasonable steps to ensure that the business of a firm is organised so that its effectively controlled |
