Chapter 6- Legal And Regulatory Environment Flashcards Preview

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Flashcards in Chapter 6- Legal And Regulatory Environment Deck (11):
1

The 3 regulatory bodies

FCA
PRA
Financial policy committee

2

3 pillars of the FCA

Proactive firm supervision
Event driven work
Issues and products

3

FCA

Financial conduct
Protects consumers, competition
Ensures firm has product governance
4 panels - consumer, regulated firms, small firms, market practitioners

4

PRA

Prudential regulation authority
Solvency and stability
Proactive intervention framework
Can control the FCA

5

Financial policy committee

Systemic risks that could impact industry
11 principles of business PRIN

6

SYSC

Apportionment and oversight officer
Money laundering officer

7

Public interest disclosure act 1998

Prevents punishment for whistle blowing

8

Establishment or service basis

New office
Just from home state - surplus lines business
In US - Kentucky, Illinois and us Virgin Islands

9

Authorisation of new insurer

Add name to current syndicate, new member, or new syndicate and MA
Solvency margin is the amount that assets exceed liabilities

10

FOS

Financial ombudsman service
Private or individual small companies disputes
Max award of 150k

11

FSCS

Under FCA control
Covers claims against firms which can't pay e.g. Insolvent
Private individual and small business
Policyholders covered
90% of claim for general, 100 for long term
Levy on firms provides compensation pot
Lloyds has own central fund