5B Flashcards
(16 cards)
What legislation established the FCA?
Financial Services and Markets Act 2000 (FSMA), amended by the Financial Services Act 2012
The FSMA was amended in 2023 to include net zero compliance requirements.
What is the strategic objective of the FCA?
Ensure that relevant markets function well.
Name the eight regulatory principles considered by the FCA.
- Efficiency & Economy
- Proportionality
- Sustainable Growth
- Consumer Responsibility
- Senior Management Responsibility
- Recognising Business Differences
- Openness & Disclosure
- Transparency
What is the purpose of FCA objectives?
- Political & Public Accountability
- Governance
- Legal Accountability
What is the operational objective of protecting consumers?
Prevent financial harm before it occurs.
What does the FCA’s Consumer Duty require from firms?
Adopt a higher standard of care toward consumers.
What are the components of the Consumer Duty introduced by the FCA?
- New Consumer Principle
- Cross-Cutting Rules & Outcomes
What is the FCA’s role in protecting financial markets?
Supports financial stability through supervision & regulatory activities.
Who has explicit responsibility for financial stability?
Bank of England, FPC, and PRA.
What are the key areas of focus for the FCA in promoting financial market integrity?
- Trading Infrastructure Resilience
- Integrity of Financial Markets
- Combating Market Abuse
- Preventing Financial Crime
What is the FCA’s approach to promoting competition?
Encourages both retail and wholesale competition.
What are the objectives of FCA competition regulation?
- Firms compete for business via better services & value
- Prices align with real costs
- Firms innovate to meet genuine consumer needs
Under which act does the FCA enforce anti-competitive agreement breaches?
Competition Act 1998.
What is the FCA’s secondary objective regarding international competitiveness?
Facilitate the international competitiveness & growth of the UK economy.
What are the key elements of international competitiveness according to the FCA?
- Achieve positive, sustainable economic outcomes
- Attract international business to the UK
- Enable UK-based firms to compete effectively in global markets
How does the FCA strengthen the UK’s position in financial services?
Supports robust financial firms for long-term competitiveness.
