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1

What is the Data Protection Act of 1984

This Act gave individuals protection, if an organisation lost, disclosed without authorization or retained inaccurate information about them. Computer Data was defined as Data for the purpose of this Act

2

What is the Data Protection Act of 1998

This replaced the Data Protection Act of 1984, and was concerned with the regulation of data transfer, but not confined to computer data. Individual information stored in pother types of systems fell in this scope,as long as the system were organised in a way data could be interrogated by name

3

General Data Protection Regulation(GDPR)

Came into effect 25/05/2018,has Implication on every global firm that holds or use data on EU citizen and residents. Non-EU organisation doing business in the EU and holding EU personal data need to comply with this regulation

4

Data Protection Act 2018

recieved assent on 25/05/2018. It modernizes data protection laws to ensure they are effective in today's digital economy

5

What provision does the Data Protection Act 2018 apply

It applies the provision of General Data Protection Regulation and the Law enforcement Directive to UK law

6

Who does the GDPR apply to

It applies to controllers and processors,the controller says how and why personal data is processed and the processor acts on the behalf of the controller

7

The GDPR places specific legal obligation on who

It places specific legal obligation on the processors, like having to maintain records of personal data and processing. This obligation are new requirement under the GDPR

8

Are controllers relieved of their obligations, where a processor is involved

No, they are not, the GDPR places further obligations on controllers to ensure their contracts with processors comply with GDPR

9

What information does the GDPR apply to

It applies to personal data, including changes reflecting in technology and the way in which information is collected.
It applies to both personal data and manual filing system s

10

Which categories are included, in sensitive personal data

1.race
2.ethnic origin
3.politics
4.religion
5.trade union membership
6.genetics
7.biometrics
8.health
9.sex life
10.sexual orientation

11

Under the GDPR, the data protection principles are similar to those of Data Protection Act 1998 with some detailed addition, which is the most significant addition

The most significant addition is the accountability principle, where by the GDPR requires firms to show how they comply with principles

12

What is required for processing to be lawful under the GDPR

Firms need to identify a lawful basis before the can process data and document it

13

How does the GDPR lawful basis have an effect on an individuals right

a firm relies on someone's consent, the individual usually has stronger rights

14

What are the new GDPR rights

1.The right to be informed
2.The right of access to their information, free of charge
3.The right to rectification
4.The right to erasure
5.The right to restrict processing
6.The right to data portability
7.The right to object
8.right in relation to automated decisions

15

The right to be informed

Data subjects have a right to receive information about how and why their information is used ad what their rights are.
This is provided in the form of a privacy note

16

What are the certain, mandatory information to be included in a Privacy note

1.detail of controller/processor
2.what will be done with their data
3.who the data will be passed to
4.how long it will be kept for
5.what their individual rights are

17

The right of access

Individuals have the right to their information, free of charge. It is referred to as a subject access request

18

The right to erasure

It is often referred to as right to be forgotten. It doesn't always apply in insurance,because insurance customer information may be required for longer for than expected as some policy can be claimed against many years after event can take place.

19

The right to object

In insurance , all individuals have the right to object direct marketing and this right should be explicitly bought tot heir attention

20

Under the GDPR which officer is mandatory for some companies to have

A Data Protection officer is mandatory, but for majority small/medium companies insurance brokers will not be required

21

GDPR introduces duty on all organisation to report certain types of data breach to relevant authority and the individuals affected

GDPR provision breaches lead to up to 20 M pounds or 4% of global annual turnover of the preceding financial year
Other breaches lead to up to 10 M pounds or 2% of global annual turnover of the preceding financial year ,whichever is greater

22

The GDPR restricts the transfer of personal data to

It restricts the transfer of data outside the European Union, to third countries or international organisation

23

The main elements of the Data Protection act 2018

1.General Data Processing
2.Regulation and enforcement

24

Subjects of ethics are tied up with

They are tied up with issued of morality

25

Ethical Standards are concerned with

They are concerned with the way in which moral outcome ca be achieved in a given circumstance

26

According to ethical standards what is the hallmark of a professional

Is the ability to step back from issues of self interest and provide competent independent advise in the interest of the client. This will inspire public trust in their services

27

Code of conduct

All professional bodies produce a code, to which each member must adhere.They are not forcible by law, but may lead to penalties if failure to comply

28

Do professional bodies take disciplinary action against members who fail to comply by their codes like trade bodies

No, they do not take any disciplinary action to their members, it follows failure to comply with the code will bring members into disrepute

29

What do the codes of ethics of the CII represent

This represents a set of ethical principles for insurance and financial services professionals world wide

30

What is the basis of the CII code of ethics

It's principal based, thus takes it is flexible enough to take into account wide range of different roles undertaken within the sector

31

what are the overlapping requirements of ethical behavior for CII

Integrity
Fairness
Service
Client's Interest
Compliance

32

The code of the CII is more concerned with

It is more concerned with behavior and attitude

33

What are measures taken by the CII, in the failure of members to follow the code

The CII will take disciplinary action

34

What are the five main principles in the Code of Ethics of the CII.

The members must
1.comply with the code and all relevant laws and regulation
2.act with the highest ethical standards and integrity
3.act in the best interest of each client
4.provide a high standard of service
5.treat people fairly regardless of their categories of sensitive data

35

The decisions of the FOS financial ombudsman service are highlighted

There decisions are independent of the court system and demonstrate the FOS expectation of fairness of treatment to the consumer

36

Emphasizing the ethical nature of the code

Members must abide by both Spirit and letter of the law

37

Highest ethical standard and integrity principle deals with

It deals with avoiding taking unfair advantage of a client.colleague or thirdpaty. Its not all prohibitory, members must promote professional standards and encourage the use of ethical codes within the fir,

38

What theme to the FCA and the code have in common

The fair treatment to clients

39

High standards of service principle deals with

It deals with ensuring communication with clients must be accurate and straightforwards.Transparency and suitability are the main elements of this section

40

High-level rules, applying to all authorized firms are found in which source book

They are found in Senior Management arrangement, systems and controls(sysc)

41

What does the FCA place great importance on

It places importance on quality of performance and quality of advise given to clients

42

According to the source book The principles of the the firm must

1.employ personnel with the skills, knowledge and expertise necessary to carry out responsibilities allocated to them
2.take into account nature, scale and complexity of it business and nature and range of financial services and activities undertaken

43

For those providing advice in general insurance, what is the extra requirement

The extra requirement of the training and competence source book apply only to firms whose employees advise on contracts with consumers

44

What does competence mean

This means having the skills, knowledge and expertise needed to carry out responsibilities of the employees role

45

Competence means being able to achieve

Good standard of ethical behavior

46

The FCA states three key areas of training and competence that firm must consider are

1.assesing competence
maintaining competence
3.record keeping

47

Firms must put in place a detailed written manual for

That indicates how they deal both with assessment of competence and its maintenance at every stage of an employee's development. This applies from initial stage when the person applies for a job through the point they are deemed to be competent

48

FCA insists a range of approved qualifications for

For those who wish to provide financial advice in areas of life insurance, pension and investment, but for general insurance it is not required

49

Once competent, the maintenance of competence must take account of

1.technical knowledge and application
2.skills and expertise
3.change in the market and to products, legislation and regulation

50

For firms advising on insurance, what does the FCA require on record keeping of a ceased employee

It requires that records of training and assessment of competence to be kept for at least three years from the time employment ended

51

The FCA regulations are concerned with two categories of complaint, which are

Eligible and non eligible

52

What is the starting point of the complaint handling procedure

The starting point is establishing whether the situation falls within the firms definition of a complaint

53

Who is an eligible compliant

1.consumer
2.a charity with annual income less than 6.5m pounds
3. a trust with net asset value of less than 5 m pounds
4.A Consumer buy to let consumer
5.a small b'ness with annual turnover less then 6.5m and fewer than 50 employees or balance sheet total of less than 5m
6.a micro-enterprise which employs less than 10 people, and annual balance sheet or turnover not exceeding 2M pounds
7.a guarantor

54

All complaints from eligible complainants are subject to

FCA complaint handling rules and the complainants within these categories have a right of access to the FOS

55

How will the FOS determine the eligibility of and eligible complainant

They will determine the eligibility by reference to appropriate evidence such as audited accounts or VAT returns

56

What about non-eligible complaints

Firms must have in place and operate, appropriate procedures for registering and responding to the expression of dissatisfaction

57

What should the complaints file include

1.the name of the person dealing with the complaint
2.the name of the complainant
3.the capacity(eligible or non-eligible)
4.the substance of the complaint
5.all correspondence and files notes relating to the complaint
6.any redress offered

58

How long should complaints files be stored for

they should be retained for at least 3 years

59

What is a master compliants log used for

This is used for tracking the progress of a complaint

60

According to the FCA,how should complaints be handeled

They should be handled promptly and the progress should be monitored

61

If complaints are resolved early (within three business days) how should this be handled

They are handled less formally without sending out final response letter. They will issue a Summary Resolution Communication to complainants. If the complainants feel that the complaint has not been resolved, they can take it up to the FOS

62

within 8 weeks of receiving a complaint a firm must provide

1.a final response, being a written response from the respondent
2.a written response

63

What should be enclosed in a final response from the respondent, within 8 weeks of receiving a complaint

1.accepts complaint, where appropriate offers redress action
2.offers redress action, without accepting complaint
3.rejects complaint and gives reasons for doing so
4.attached a copy of the FOS standard explanatory leaflet
5.Inform the complainants if they are not satisfied with the response, the must take it up with the FOS, and must do so within 6 months

64

What should be enclosed in a written response from the respondent, within 8 weeks of receiving a complaint

1.explain why it is not in the position to make a final response and Indicate when it will be able to provide one
2.inform the complainant they can now refer the complaint to the FOS
3.attach a copy of the FOS standard explanatory leaflet

65

The Financial Ombudsman Service was introduced following the enactment of

Financial Services and Markets Act 2000(FSMA)

66

What is the Financial Ombudsman Service

This is an independent body that has a memorandum of understanding with the FCA for cooperation and communication as they carry out independent roles

67

Membership of the FOS is compulsory to which firms

Authorized insurers and other authorized firms like intermediaries

68

What is type of mechanism is the Financial Ombudsman Service

This is an independent mechanism for dealing with disputes from eligible compalints

69

What does the FOS aim to provide

It aims to provide impartial and independent resolution of disputes between insurer and policyholder or intermediaries and their clients. It is not concerned with commercial customers of large enterprises

70

Vast majority of cases referred to the FOS deal with

They deal with claims, but complaints re also investigated

71

How does a complaint reach the FOS

First a complaint will require a final response from the firm before it can be take up by the FOS. The complaints procedures of the authorized firm has been exhausted .If the dispute remains unresolved between the insurer and compliant then the FOS steps in

72

What is the maximum financial reward FOS and make

150,000 pounds, however they may recommend a higher figure if appropriate but this will not be binding

73

What shall the insurer or insured do if the insured accepts or rejects the FOS decison

If insured accepts, then the insurer or intermediary has to pay an award up to the monetary limit. If the insured refuses they can still choose to issue legal proceedings

74

What is the Financial Services Compensation Scheme

This is the Uk's compensation fund of the last resort for customers of deposit-taking companies and investment firms,and authorized firms of insurance companies and intermediaries

75

The Financial Services Compensation Scheme covers claims for which firms

It covers claims against firms where they are unable or likely to be unable to pay claims against them.I occurs when a firm has become insolvent or gone out of buisness

76

Why was the Financial services compensation scheme set up

It was set up to assist private individual, however small businesses(with less that 1 million turnover) are covered

77

What type of insurance does the Financial services compensation scheme cover

compulsory(third part), general and life insurance. Triggered when an insurance company is out of business or under liquidation

78

Under the Financial services compensation scheme the type of compensation policyholder receives depends on

IT will depend on the type of policy.

79

Protection is 100% guaranteed for which policies

1.Compulsory Insurance(Third pary and employers liability)
2.Professional Indemnity Insurance
3.Long term insurance(pension and life)
4.certain claims of injury/sickness/infirmity of the policyholder

80

Protection is 90% guaranteed for which policies

For a claim with no upper limit for other types of policy including general insurance advice and arranging

81

How is the financial Service Compensation Scheme funded

It is funded by a levy on all authorized firms who receive income from eligible claimants