C9 - Regulation And Supervisjon Of The Offshore Services Sector Flashcards
Primary legislation
FSMA, FSC
Regulation powers:
Enforce and sanctioning powers
Supervise adherence go jurisdictions calls
Fit and proper test - integrity, structure, resources, financial standing
Secondary legislation
Additional, detailed requirements
Codes of practice
Guidance - jurisdiction requirements
Data protection
Personal
Opt in
Social media
Identity
Data protection
Personal sensitivite
Medical
Explicit
Political
Religion
Data protection
Principles
R - rights U - unsecured country L - length of time E - excessive P - purpose A - accurate L - lawfully obtained E - environment
International bodies
Role
Standard settlor for securities markets
International bodies
Objectives
Protect investors
Fair markets
Reducing systemic risk
International bodies
Principles
Regulator
Self-regulator
Securities regulation
Issues
Insider dealing
Offences
D - dealing
E - encourage
D- disclosure
Insider dealing
Defences
P - profit not expected
D - disclosed
D - dealt anyway
Insider dealing
P - particular
S - specific
P - private
S - significant price move
Insider dealing
Penalty
7 years
Retail distribution review
Intended to raise standards investors can expect
Retail distribution review
Benefits
Understand advice service
Independent advice is independent
Advisor not influenced by commission
Retail distribution review
Elements
Advisor charging - transparent
Independent advice - clear
Professionalism - respect individuals
U.K. Regulation
Fca
Successor of fsa objectives:
Consumer protection
Integrity
Competition
Fca 10 supervision principles
Consistent messages Communicate openly Robust Judgment approach Fair outcome Focus on big issues Firms act in right spirit Individual accountability Examine business models and culture Forward looking and pre-emotive
Fca 11 principles for business
Skill card and diligence Management and control Financial prudence Market conduct Customer interest Client communication Conflicts of interest Customer relationship with regulator Integrity Client asset Relationship with regulator
Supervision pillars FCA
Firm
Systemic framework
Supervision pillars FCA
Event driven
Unforeseen problems
Supervision pillars FCA
Issues and products
Sector that may put clients at risk
Market abuse
Insider dealing
Insider deals/attempts to deal in qualifying investment on basis of diner info relating to investment
Market abuse
Improper disclosure of insider info
Insider disclosures info to another, other than in proper course of exercise
Market abuse
Misuse of info
Behaviour based on info that’s not available to those using market but would, if available to user, be relevant to decision about terms in which to deal
Market abuse
Manipulating transactions
Effecting transactions/orders to trade which may give false/misleading impression as to supply of or demand for investment/secure price of investment st abnormal/artificial level
Market abuse
Manipulating devices
Effecting transactions/orders to trade which employ fictious devices/any for if deception/contrivance. Spreading/misleading info with view to increase price of shareholding and giving false impression of share price
Market abuse
Dissemination
False/misleading impression about investment by person who knew info was false/misleading
Market abuse
Distortion and misleading behaviour
Regular user market false/misleading impression as to supply of or demand for investment or that otherwise distorts the market in an investment
