Flashcards in 4 - The Regulation of Financial Services Deck (22)
What was the objective of the FSMA?
FSMA = Financial Services and Markets Act (2000)
The objective of the FSMA was to bring together the regulation of all sectors of the UK financial services industry under one regulatory system.
What major change came under the Financial Services Act (2012)?
From 2013 the responsibility for regulation was split between three bodies: the FPC, the PRA and the FCA.
What are the UK's financial authorities?
The Bank of England (FPC)
What is the HM Treasury?
The department responsible for formulating and putting into effect the UK Government’s financial and economic policy.
The Chancellor of the Exchequer is ultimately responsible for regulation in the UK.
Commitment made by the Bank of England
Committed to promoting and maintaining a stable and efficient monetary and financial framework as its contribution to a healthy economy
What are the CORE purposes of the Bank of England?
1 - monetary stability
2 - financial stability
Financial Conduct Authority - an independent body that regulates most of the financial services industry in the UK
Prudential Regulatory Authority - part of the BoE and is responsible for prudential regulation
PRA and FCA for the 'big dogs'
EU's Financial Services Action Plan (2012) including MiFiD and MiFiD II - designed to help integrate Europes Financial markets
Fifth Money Laundering Directive
5MLD - aims to enhance the beneficial ownership measures put in place by the 4MLD
Fourth Money Laundering Directive
provides a common EU basis for implementing the revised FATF recommendations on money laundering
Who implements 5MLD in the UK?
The Money Laundering and Terrorist Financing Regulations 2019
The Competition and Markets Authority (CMA) works with HM Treasury and the FCA as an independent public body to ensure that competition between companies in the UK remains fair for the benefit of businesses, consumers and the economy as a whole
What is the objective of the Pension Regulators (TPR)?
1. protect the benefits of members of occupational pension schemes
2. protect the benefits of members of personal pension schemes (where there is a direct payment arrangement)
3. promote and to improve understanding of, the goof administration of work based pension schemes
4. reduce the risk of situations arising that may lead to compensation being payable from the Pension Protection Fund (PPF)
5. maximise employer compliance with employer duties and the employment safeguards introduced by the Pensions Act 2008
6. minimise any adverse impact on the sustainable growth of an employer
Information Commissioner's Office
Main duty is to oversee and enforce compliance with the GDPR and Data Protection Act (2018)
Responsible and accountable for everything
FCA expects them to ensure they have appropriate procedures to prevent, identify and address any risks to the firm and its customers
the Financial Policy Committee
- responsible for watching for emerging risks to the financial system and providing strategic direction for the regulatory regime
Financial Action Task force - is international
the EU directive for governing firms conduct of business
IFA firm not subject to MiFID if it's just in the UK and doesn't hold client money
Who did the Pensions Regulator take over from?
They took over from the OPRA with the focus on being proactive
Are compensation claim handlers covered by FSMA?