Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
5 Cards in this Set
- Front
- Back
|
Under the FSMA 2000, there were three key dates. What happened on each of thefollowing dates?
December 2001 October 2004 January 2005 |
December 2001 – the FSA took regulatory responsibility for most of the financialservices industry. October 2004 – the FSA took regulatory responsibility for mortgages. January 2005 – the FSA took regulatory responsibility for general insurance. |
|
|
The Financial Services and Markets Act 2000 (Regulated Activities) Order set outactivities for which firms must be authorised. How many can you list?
|
Regulated activities include: accepting deposits;
effecting and carrying out insurance contracts (including funeral plans); dealing in and arranging deals in investments; managing investments; establishing and operating collective investment schemes; establishing stakeholder and personal pension schemes; advising on investments (including personal pensions and SIPPs); mortgage lending and administration; advising on and arranging mortgages; advising on and arranging general insurance |
|
|
Briefly describe the role of each of the FPC, the PRA and the FCA
|
. The FPC has a key role in maintaining the stability of the UK financial system throughmacroprudential supervision. It must look at the UK’s financial system and identifyactual and potential risks to the system as a whole. The main responsibility of theFPC is protecting and enhancing the resilience of the UK financial system but itsactions must not have a significant adverse effect on the capacity of the financialsector to contribute to the growth of the UK economy in the medium or long term.The FPC will identify risks posed by structural factors and situations where leverage,credit or debt levels may not be sustainable.The PRA has responsibility for the prudential regulation of those firms that fall underits remit – deposit takers, insurers and significant investment firms. Its role is toidentify and understand the main threats to the stability of the financial system byassessing whether firms are vulnerable as a result of issues relating to businessmodels, capital and liquidity, governance, risk management and controls. TheFCA is responsible for the conduct of wholesale and retail financial markets andthe prudential regulation of around 24,500 businesses. It has a number of specificresponsibilities:
ensuring that relevant markets function well; supervision of the conduct of financial services firms; as well as prudential supervision of firms not supervised by the PRA. |
|
|
Sam and Chris run a small business as partners. They wish to arrange a £30,000business loan. What would be the status of the loan under the Consumer Credit Act2006?
|
The loan would be exempt because it is to a small business and above £25,000.
|
|
|
Which organisation is tasked with protecting the benefits of members of work‑basedpension schemes?
|
The Pensions Regulator is tasked with protecting the benefits of members ofwork‑based pension schemes
|
