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Investment Environment: 1 > Chapter 1 > Flashcards

Chapter 1 Flashcards

1
Q

FSCS does what?

A

Compensation scheme for authorised persons or AR. Oversees by FCA and PRA

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2
Q

4 European Union Objectives

A

Economic and social progress
Sustainable development
An area without internal frontiers
Economic and monetary union

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3
Q

Dual regulated firms apply to whom for authorisation

A

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

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4
Q

Excluded activities:

A 
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
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5
Q

TCF Outcomes

1-6

A 
Confidence 
Product meet needs 
Consumers have clear info 
Advice takes into account personal situation 
Products perform as expected 
No unreasonable post sale barriers
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6
Q

European Systematic Risk Board does what?

A

Monitor entire financial sector to identify problems

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7
Q

European Commission supervisory authorities are? (3)

A

ESMA
EBA
EIOPA

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8
Q

EU Regulation vs EU Directives

A

Directives need to be adopted by authorities before they become law

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9
Q

Main powers of ESMA

A

Giving technical advice to European Commission
Drafting subordinate acts
Develops guidelines
ESMA can launch investigation

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10
Q

FCA Handbook BLOCKS

1-7

A 
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
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11
Q

What does FOS do?

A

Consider complaints and make awards for financial loss, suffering, damage to reputation and distress/inconvenience

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12
Q

What do PRA do?

A

Capital adequacy of regulated firms

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13
Q

Payment Systems Regulator (PSR)

Objectives

Powers

A

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

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14
Q

What does FCA stand for?

A

Financial Conduct Authority

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15
Q

The tax and chancery chamber of the upper tribunal info?

A
  • run by ministry of justice (government)
  • if person/firm upset by actions of FCA/PRA they go to TCCUT
  • final decision made here
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16
Q

Name specified activities:

A 
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
17
Q

Excluded investments from regulation:

A

Physical property
Currencies
Premium bonds
National savings

18
Q

ESMA one missions and three objectives

A

To enhance investor protection

Investor protection
Orderly markets
Financial stability

19
Q

(FSAP) Financial Section Action Plan 3 Objectives

A

EU single whole market
Open and secure retail market
State of art prudential rules and structure

20
Q

Financial Policy Committee:

  • how often do they meet
  • type of risk they focus on
  • who do they direct
A
  • quarterly
  • systematic
  • direction to FCA and PRA
21
Q

ESMA four activities

A

Promoting supervisory convergence
Assessing risk to investors Markets and financial stability
Completing a single rule book for EU financial markets
Directly supervising financial entities

22
Q

Temporary Product Intervention Rules (TPIRs)

How long?
When used?

A 
12 months only 
Products discrimate 
Products need features changing 
Products bring detriment 
Flawed product
23
Q

Name some Regulated activities

A 
Shares 
Depositary receipts 
Warrants 
Bonds 
Collective Investment Schemes 
Futures
CFDs
Lloyds Syndicates 
Financial plan rights 
Pension rights
Mortgages 
Deposits 
Home finance
Rights to investments

Investment Environment: 1 (4 decks)

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