Chapter 1 Flashcards
FSCS does what?
Compensation scheme for authorised persons or AR. Oversees by FCA and PRA
4 European Union Objectives
Economic and social progress
Sustainable development
An area without internal frontiers
Economic and monetary union
Dual regulated firms apply to whom for authorisation
PRA - the application will be considered by both FCA and PRA and the following processes can occur:
Consent: FCA refuses consent to the PRA, if the FCA doesn’t consent the PRA can refuse application
Consult: for certain permissions the PRA must consult FCA. The PRA must consider response of the FCA but are not bound by it
Excluded activities:
Newspaper advice Tv broadcast Bloomberg Trustees/nominees Operation employee share scheme Providing insurance as principle LOSS ADJUSTERS activity Trading on own account Foreign exchange contracts Abroad brokerage
TCF Outcomes
1-6
Confidence Product meet needs Consumers have clear info Advice takes into account personal situation Products perform as expected No unreasonable post sale barriers
European Systematic Risk Board does what?
Monitor entire financial sector to identify problems
European Commission supervisory authorities are? (3)
ESMA
EBA
EIOPA
EU Regulation vs EU Directives
Directives need to be adopted by authorities before they become law
Main powers of ESMA
Giving technical advice to European Commission
Drafting subordinate acts
Develops guidelines
ESMA can launch investigation
FCA Handbook BLOCKS
1-7
Block 1: high level standards Block 2: prudential standards Block 3: business standards Block 4: regulatory process Block 5: regress Block 6: specialise sourcebooks Block 7: listing, prospectus and disclosure
What does FOS do?
Consider complaints and make awards for financial loss, suffering, damage to reputation and distress/inconvenience
What do PRA do?
Capital adequacy of regulated firms
Payment Systems Regulator (PSR)
Objectives
Powers
Ensure payment systems are good
Promises effective comp
Promise development of payment systems
Set standards
Require operators to provide payment systems
Amend agreements (fees)
Act alongside CMA to rectify anti competitive behaviour
What does FCA stand for?
Financial Conduct Authority
The tax and chancery chamber of the upper tribunal info?
- run by ministry of justice (government)
- if person/firm upset by actions of FCA/PRA they go to TCCUT
- final decision made here
Name specified activities:
Dealing Managing Advisory Arranging MTFs Custodian of investments Operating CIS Funeral plan organisation Home finance Dormant fund accounts Matching buyers and sellers Winding up Contracts of insurance Bidding on emissions Dematerialised instructions
Excluded investments from regulation:
Physical property
Currencies
Premium bonds
National savings
ESMA one missions and three objectives
To enhance investor protection
Investor protection
Orderly markets
Financial stability
(FSAP) Financial Section Action Plan 3 Objectives
EU single whole market
Open and secure retail market
State of art prudential rules and structure
Financial Policy Committee:
- how often do they meet
- type of risk they focus on
- who do they direct
- quarterly
- systematic
- direction to FCA and PRA
ESMA four activities
Promoting supervisory convergence
Assessing risk to investors Markets and financial stability
Completing a single rule book for EU financial markets
Directly supervising financial entities
Temporary Product Intervention Rules (TPIRs)
How long?
When used?
12 months only Products discrimate Products need features changing Products bring detriment Flawed product
Name some Regulated activities
Shares Depositary receipts Warrants Bonds Collective Investment Schemes Futures CFDs Lloyds Syndicates Financial plan rights Pension rights Mortgages Deposits Home finance Rights to investments
