3.2 Sector regulation for EU member states Flashcards
The EU regulates three different sectors. What are these?
Financial services regulation
Environmental protection
Health and safety
The EU only becomes involved in sector regulation when?
When issues span across member state boundaries, or where there is a threat to the human rights of EU citizens.
How are EU sector regulations documents and enforced?
Through the use of EU directives.
Why are individual organisations not required to review individual EU directives?
Because directives are implemented into state law.
What does ECB stand for?
European Central Bank
What is the European Central Bank?
The central bank for states who have adopted the Euro, with responsibility for maintaining financial stability.
What is meant by a “systemically important financial institution?
Any bank, insurer or other institution whose failure may affect the stability of the financial system.
Which UK body regulates systemically important financial institutions in the UK?
The Prudential Regulation Authority (PRA)
Which organisations are regulated by the European Central Bank?
Systemically important financial institutions within the Eurozone.
What is “prudential regulation”?
Regulation that governs the financial soundness of financial institutions in order to protect the customers of these institutions and maintain financial stability.
What is “conduct of business” regulation?
Regulation that governs the conduct of financial organisations, including financial institutions and and intermediaries supporting the sale of financial products.
