key words topic 7

Question 1

Transparency Directive

Answer 1

European legislation requiring financial services firms to store and provide regulated information in a specified manner.

Question 2

Remuneration Code

Answer 2

A code operated by the Financial Conduct Authority requiring that 50% of the bonuses paid to a bank’s senior managers and others in key positions of responsibility is paid in shares.

Question 3

European System of Financial
Supervision

Answer 3

The system to stabilise financial markets and strengthen the supervision of the financial sector throughout Europe.

Question 4

European Securities
and Markets
Authority

Answer 4

The body that ensures the integrity, transparency, efficiency and orderly functioning of securities markets, as well as enhancing investor protection

Question 5

European Insurance and Occupational
Pensions Authority

Answer 5

The body that supports the stability of the financial system, transparency of markets and financial products as well as the protection of insurance policyholders, pension scheme members and beneficiaries

Question 6

European Banking
Authority

Answer 6

The body that ensures effective and consistent prudential regulation and supervision across the European banking sector

Question 7

EU Deposit
Guarantee Scheme
Directive

Answer 7

European Union legislation that sets out the minimum level of compensation for depositors if a financial institution fails. It was set at €100,000 in 2010.

Question 8

Capital Requirements Directive

Answer 8

European Union legislation that specifies the liquid assets that providers must hold to ensure they can meet demand if large numbers of customers want to withdraw their money at the same time.

Question 9

Boomerang
generation

Answer 9

Young adults who leave home and then need to return because they cannot afford to rent or buy a home of their own.