Topic 8 Flashcards
What is the fpc
The financial policy committee is a part of the Bank of England it monitors and responds to risks posed to the whole of the financial service market
What does the chancellor of the exchequer do
The British cabinet minister responsible for financial and economic matters and in charge of the treasury
What’s the pra
Prudential regulation authority it’s funded by fees paid by providers and it reports to the parliament, their objective is to promote safety and soundness of providers and securing an appropriate degree of protection for insurance policy holders overall their job is if a provider fails it doesn’t cause significant disruption to the uks financial services
What are the pra’s requirements
Holding enough cash and enough capital to absorb certain levels of loss
Having suitable management
Being fit and proper
Conducting business while managing risks to ensure that business is safe and sound
What is the fca
The financial conduct authority is independent.it reports to the treasury and can receive direction from the fpc . Providers have to pay fees their aim is to make sure markets function well so consumers get a fair deal
What’s the fca’s objective
To secure a appropriate degree of protection for consumers
To protect enhance the integrity of the uk financial system
To promote effective competition in the interest of consumers
How is the fscs funded
It’s funded by levies on regulated providers which are made of the size of the providers
What is cma
Competition and markets authority it’s independent non ministerial government department that works to promote competition between for the benefit of customers
Voluntary codes of conduct
Providers regulate themselves by agreeing to the code conduct
These can be
Advertising that is fair clear and not misleading
Giving customers any information about any changes to their products
Giving customers information on how products work
Dealing with the customers quickly and sympathetically
Keeping personal information on customers private
Pra role
Promote safety and soundness of providers
Securing appropriate degree of protection for insurance policyholders
Ensuring the uk financial system able to cope in a crisis
Has a role to ensure if providers fail it does not cause significant disruption to uk financial services
The pra sets requirements that providers must meet to manage risk including threshold conditions
Having enough cash to absorb certain level of loss
Being fit and proper or having suitable management
