4 - The Regulation of Financial Services Flashcards Preview

CII: R01 2020-21 > 4 - The Regulation of Financial Services > Flashcards

Flashcards in 4 - The Regulation of Financial Services Deck (22)
Loading flashcards...
1

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.

2

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.

3

What are the UK's financial authorities?

HM Treasury
The Bank of England (FPC)
The FCA
The PRA

4

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.

5

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

6

What are the CORE purposes of the Bank of England?

1 - monetary stability
2 - financial stability

7

FCA

Financial Conduct Authority - an independent body that regulates most of the financial services industry in the UK

8

PRA

Prudential Regulatory Authority - part of the BoE and is responsible for prudential regulation
PRA and FCA for the 'big dogs'

9

FSAP

EU's Financial Services Action Plan (2012) including MiFiD and MiFiD II - designed to help integrate Europes Financial markets

10

Fifth Money Laundering Directive

5MLD - aims to enhance the beneficial ownership measures put in place by the 4MLD

11

Fourth Money Laundering Directive

provides a common EU basis for implementing the revised FATF recommendations on money laundering

12

Who implements 5MLD in the UK?

The Money Laundering and Terrorist Financing Regulations 2019

13

CMA

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

14

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

15

Information Commissioner's Office

Main duty is to oversee and enforce compliance with the GDPR and Data Protection Act (2018)

16

Senior managers

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

17

FPC

the Financial Policy Committee
- responsible for watching for emerging risks to the financial system and providing strategic direction for the regulatory regime

18

FATF

Financial Action Task force - is international

19

MiFID

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

20

Who did the Pensions Regulator take over from?

They took over from the OPRA with the focus on being proactive

21

Are compensation claim handlers covered by FSMA?

NO

22

NS&I

National Savings & Investments - owned by the Gov but NOT regulated under FSMA