B Personal Finance Sector Flashcards
Bank of England
Bank of England
The UK’s central bank – responsible for maintaining a healthy level of financial stability for the UK as a whole
Banks
Banks
Handles financial transactions and stores money on behalf of its customers
Building societies
Building societies
Handle financial transactions and store money on behalf of their members
Credit unions
Credit unions
Not-for-profit organisations that handle financial transactions and store money on behalf of their members. Members are the owners.
National Saving and Investments
National Saving and Investments
A government back organisation that offers a secure saving option
Insurance companies
These are businesses that protect against the risk of loss in return for a premium
Insurance companies
These are businesses that protect against the risk of loss in return for a premium
Pension companies
Pension companies
Businesses that sell policies to individuals, either privately or through employers, to allow them to save now to fund retirement in the future
Pawnbrokers
Pawnbrokers
Businesses or individuals who loan money against the security of a personal asset, e.g. an item of jewellery.
Payday loans
Payday loans
Organisations that offer a short-term source of finance used to bridge the gap between now and the next pay day.
Using for small amounts at very high rates of interest.
Methods of interacting with customers
Methods of interacting with customers Branch Online banking Telephone banking Mobile banking Postal banking
The Financial Conduct Authority (FCA)
The Financial Conduct Authority (FCA)
The FCA is an independent organisation, funded by membership fees charged to financial service providers.
Financial Ombudsman Service (FOS)
Financial Ombudsman Service (FOS)
Appointed by the government to represent consumer in disputes with financial service providers.
The Financial Service Compensation Scheme (FSCS)
The Financial Service Compensation Scheme (FSCS)
If the financial service providers is unable to pay compensation to a consumer, e.g. it is bankrupt, the FSCS will do so.
Office of Fair Trading (OFT)
Office of Fair Trading (OFT)
A government organisation established to regulate all markets – including financial markets.
It is now part of the FCA.
Consumer Credit Legislation
Consumer Credit Legislation
Laws passed by the UK government to enforce the regulation of any organisation offering credit to consumers
Citizens Advice
Citizens Advice
Run by charities – offers advice on a wide range of financial issues
Independent Financial Advisor (IFA)
Independent Financial Advisor (IFA)
Professionals who offer independent advice to their clients on financial matters, e.g. savings, investments, mortgages and pensions
Price Comparison Websites
Price Comparison Websites
Prices are collated for similar goods/services within an industry allowing consumers to make comparisons and find the best deals
Money Advice Service
Money Advice Service
A government organisation – offers free and impartial financial advice.
Debt Counsellors
Debt Counsellors
A professional who offers independent advice on how best to manage debt
Individual Voluntary Arrangements (IVAs) bankruptcy
Individual Voluntary Arrangements (IVAs) bankruptcy
Government organisation – that allows individuals to declare themselves bankrupt – whilst agreeing to pay part or all of the money they owed to creditors though an insolvency practitioner
