What are the financial services regulatory system legislations?
- Financial services and markets act 2000.
- Financial services act 2012.
- Bank of England and financial services act 2016.
Who are the prudential regulation authority?
They focus on prudential matters. Issues such as levels of capital, solvency and risk management.
List the UK financial sector authorities.
- Financial conduct authority.
- Prudential regulation authority.
- Bank of England.
- Financial policy committee.
- HM treasury.
Who is ultimately responsible for the regulation of financial services in the UK?
Chancellor of Exchequer.
What is the purpose of the authorities?
They work together to ensure a smooth, efficient and effective running of the UK’s economy and the financial sector.
What are the operational objectives of the FCA?
1) Protect consumers.
2) Protect financial markets.
3) Promote competition.
What regulated activities do the FCA conduct?
Dealing in, arranging, managing or giving advice on:
- Banking.
- Insurance.
- Investment management.
- Pensions.
- Home finance.
What are the codes of conduct for the FCA?
1) Must act with integrity.
2) Must act with due skill, care and diligence.
3) Must be open and co-operative with the FCA, PRA and other regulators.
4) Must pay due regard to the interests of customers and treat them fairly.
Examples on codes of breach of conduct.
- Insider dealing.
- GDPR.
- Money laundering.
- Misleading financial promotions.
- Financial incentives encouraging staff to mis-sell.
- Providing unauthorised advice.
- Overstating past performance figures of fund performance to induce consumers to invest.
- Misleading conduct.
