Module 10 (Legal And Economic Environment) Flashcards
(32 cards)
Enhances public confidence Gives open access to markets Establishes industry practices Create opportunity for innovation Imposes barriers to entry Protect clients from institution failure Help the government manage monetary policy What are all of these services?
Accomplishment of financial services industry and customer protection regulation
The ________ provides deposit insurance that is backed by the US government.
FDIC
The NCUSIF provides deposit insurance for __________________ that are backed by the US government.
credit union accounts
The SIPC protect investors from losses due failure of a…
securities firm
True or false? The SIPC protects against investment losses that are not back by the US government.
True
The PBGC protects ______________ that are not backed by the US government.
defined benefit plans
The a law that gives protection from liars and behavior fraud when selling new securities by requiring the security to be supported with documentation.
Securities Act of 1933
This act is created the SEC and allowed them power to regulate security firms, SROs, and requires reporting information by publicly traded companies.
Securities Exchange Act of 1934
This act formed the FDIC and separated bank according to the type of services they provide.
The Glass-Steagall Banking Act of 1933
This Act allowed banks and insurance companies to now compete in both investment banking and insurance products.
Gramm-Leach Bliley Act of 1999
This Act applies to bonds and requires a contract agreement between the bond issuer and bondholder before the bond can be sold.
Trust Indenture Act of 1939
This Act requires companies to fully disclose their financial status to investors.
Investment Company Act of 1940
This Act requires SEC registration for those providing security advice.
Investment Advisors act of 1940
This Act imposes minimum funding standards for retirement pension plans and created the Pension Benefit Guarantee Corporation.
ERISA 1974
As a direct response to Enron, the Act increased financial disclosure to prevent future fraudulent acts by corporate accounting boards.
Sarbanes-Oxley Act of 2002
This Act return the power of insurance regulation back to the states.
McCarran-Ferguson Act of 1945
Most customer protection legislation is overseen by the…
Federal Trade Commission.
The _________________ provides a toll-free hotline for a victim of identity theft.
Federal Trade Commission
Federal laws generally prohibit discrimination in…
lending.
Federal laws generally require disclosure to borrowers and…
lenders.
Federal laws generally require acceptable ____________ procedures.
collection
This Act allows public assistance income to be included as their “normal” income, prohibits discrimination based on race and sex, and any denial of credit must be explained.
Equal Credit Opportunity Act
This Act allow people to receive a credit report, remove incorrect information from the report, know who requested the report, file a dispute, and add explanations to the report.
Fair Credit Reporting Act
This Act requires creditors to provide disclosure regarding amount financed, APR, payment schedule, penalties, and other fees of a lending agreement.
Truth-in-Lending Act
