3.6 - Legal Factors Flashcards
Financial providers wanting to set up in business need to comply with which laws?
- Financial Services and Markets Act
- Consumer Credit Act
- Banking Act
- Financial Services Act
Other legal requirements that companies need to comply with:
- Company law
- Employment legislation
- Tax laws
- Crime and terrorism legislation
- Accounting standards
Financial service providers must draw up their annual financial statements in line with what?
International Accounting Standards (IASs)
Primary and secondary legislation that are relevant in the context of financial services:
- The Competition Act
- The Consumer Credit Acts
- The Consumer Protection from Unfair Trading Regulations
Who is the responsibility of enforcing relevant consumer protection provisions divided between?
The FCA and CMA
Who used to be responsible for enforcing relevant consumer protection provisions?
The OFT and Competition Commission
What is the CMA responsible for?
- Investigating mergers which could restrict competition
- Conducting investigations where there may be competition and consumer problems
- Bringing criminal proceedings against individuals who commit an offence
What can consumers do if they are sold a financial product or service in breach of the provisions of the Distance Selling Regulations or the Consumer Rights Act?
Take advantage of complaints procedures and ‘cooling-off’ periods during which they are entitled to change their minds about purchases.
What do the Distance Selling Regulations regulate?
The sale of goods and services via the internet
What are regulations applied to?
All EU member countries
What are directives?
Instructions issued by the EU Commission to the governments of the EU member countries.
Can EU member countries imply their own laws?
Yes, as long as it is within the requirements of the directives.
Legal external factor examples:
- Consumer protection
- Employment law
- Competitive regulations
