5C Flashcards
(27 cards)
What must businesses and individuals conducting regulated activities apply for under FSMA?
Part 4A permission
FSMA stands for the Financial Services and Markets Act 2000.
Which institutions does the PRA authorise?
Deposit-taking & insurance institutions
Which types of firms does the FCA authorise?
Smaller firms, including:
* Investment advice
* Home finance
* General insurance
What enforcement powers does the FCA have?
Impose penalties for market abuse and conduct investigations
What are the FCA’s responsibilities regarding client money handling?
Regulate client money handling and financial promotions
What is one of the main roles of the FCA?
Direct authorisation & regulation of the UK financial services system
Who does the FCA report to?
The Treasury and Parliament
What does the Financial Services Consumer Panel (FSCP) do?
Represents consumers’ interests in policy development
What can the FCA do against unauthorised businesses?
Take enforcement action and shut down illegal firms
Which panel represents the interests of larger regulated firms?
Practitioner Panel
What is the purpose of Skilled Person Reports (s.166)?
To assess risks when expert assessment is needed
What can the FCA do under the Criminal Justice Act 1993?
Prosecute insider dealing
What type of misconduct does market abuse include?
Improper conduct that harms UK financial markets or participants
Fill in the blank: The FCA can issue _______ to stop ongoing or future misconduct.
Injunctions
What are the penalties for failing to cooperate with FCA investigations?
Fines or imprisonment
What types of offences can the FCA prosecute in criminal proceedings?
Claiming FCA-authorised falsely, carrying out regulated activity without authorisation, making misleading investment statements
What is one of the outcomes of civil action taken by the FCA?
Restitution orders for profits due to regulatory breach
What is the maximum penalty for insider dealing under the Criminal Justice Act 1993?
10 years’ imprisonment or unlimited fine
What does the FCA need to consider before prosecuting for market abuse?
Sufficient evidence for conviction and public interest
Under which legislation can the FCA levy penalties on registered firms for money laundering breaches?
Money Laundering Regulations 2017
What is the maximum penalty for handling criminal property under the Proceeds of Crime Act 2002?
14 years’ imprisonment and/or unlimited fine
True or False: The FCA can impose fines for market abuse under civil law.
True
What type of guidance can the FCA issue to address poor market practices?
Market-wide guidance
What is the role of the Regulatory Decisions Committee (RDC) within the FCA?
Reviews cases and makes enforcement decisions
