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Flashcards in The UK Financial Regulators Deck (86)
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1

Which regulator is responsible for authorisation, prudential regulation and supervision of building societies, credit unions, insurers and major investment firms

PRA

2

Who governs the PRA

PRC

3

What is the primaryobjective of the PRA

Promoting safety and soundness

4

Who is responsible for macro-prudential oversight of the EU system

European systemic risk board

5

What is the responsibilities of the financial policy committee

Spotting systemic risks in structural features of financial Markets or distribution of risk in a sector

6

What are the 8 regulatory principles of the FCA

Efficiency and economy
Proportionality
Sustainable growth
Responsibility of consumers
Senior management responsibility
Recognising differences in diff types of business
Openness and disclosure
Transparency

7

What are the 3 objectives of the FCA

Protect consumers
Protect financial markets
Promote competition

8

What is authorisation aka

Part 4a permission

9

To whom is the FCA answerable to

Treasury

10

Which panels is the FCA required to ,so twin and consider the views of

Financial services practitioner panel
Consumer panel
Small business practitioner panel
Market practitioner panel

11

Who recommends disciplinary actions by the FCA and which committee then considers these

Enforcement staff and the regulatory decisions committee

12

Who handles appeals on FCA decisions

The upper tribunal

13

What civil actions can the FCA take

Injunctions
Ordering payment of restitution
Granting insolvency orders

14

What activities can result in criminal proceedings

Falsely claiming to be FCA authorised
Carrying on regulated activity without authorisation
Making misleading statements to induce investment
Failing to cooperate with FCA investigations

15

What is the maximum sentence for insider dealing

7 years and an unlimited fine

16

What is the maximum sentence an AMLO could receive

Up to 2 years in prison and a fine

17

What is the sentence for failure to report money laundering

5 years in prison

18

How does FCA approach risk based supervision

Individually risk asses firms and focuses on higher risk,
Potential risks are prioritised by impact and probability analysis

19

What are the 3 pillars of The FCA risk framework

1. Proactive firm/group supervision
2. Event driven, reactive supervision
3. Thematic approach

20

What are the 2 categories of firms in relation to the level of FCA supervision

Fixed portfolio
Flexible portfolio

21

How many firms does the FCA supervise for prudential matters

18,000

22

What are the categories, in order of highest to lowest risk, of firms for prudential supervision by the FCA

P1
P2
P3

23

What is the compliance controlled function

Cf10

24

What is free asset ratio

Surplus assets held by life office divided by its liabilities expressed as a % of total assets

25

What are the HLS: Threshold Conditions (basic description as opposed to list of what they actually are)

The minimum terms for a firm to retain authorisation

26

What is the 2nd threshold condition

If a person is a corporate body constituted under UK law, it's head office and registered office should be in the UK

27

What is the 3rd Threshold Condition

A person must be capable of being effectively supervised by the FCA

28

What is the 4th Threshold Condition

Resources must be appropriate in relation to the regulated activity they wish to carry out

29

What is the 5th threshold condition

A firm must satisfy that they are fit and proper

30

What is the 7th threshold condition

The business model must be suitable