Chapter 6- Legal And Regulatory Environment

Question 1

The 3 regulatory bodies

Answer 1

FCA
PRA
Financial policy committee

Question 2

3 pillars of the FCA

Answer 2

Proactive firm supervision
Event driven work
Issues and products

Question 3

FCA

Answer 3

Financial conduct
Protects consumers, competition
Ensures firm has product governance
4 panels - consumer, regulated firms, small firms, market practitioners

Question 4

PRA

Answer 4

Prudential regulation authority
Solvency and stability
Proactive intervention framework
Can control the FCA

Question 5

Financial policy committee

Answer 5

Systemic risks that could impact industry

11 principles of business PRIN

Question 6

SYSC

Answer 6

Apportionment and oversight officer

Money laundering officer

Question 7

Public interest disclosure act 1998

Answer 7

Prevents punishment for whistle blowing

Question 8

Establishment or service basis

Answer 8

New office
Just from home state - surplus lines business
In US - Kentucky, Illinois and us Virgin Islands

Question 9

Authorisation of new insurer

Answer 9

Add name to current syndicate, new member, or new syndicate and MA
Solvency margin is the amount that assets exceed liabilities

Question 10

FOS

Answer 10

Financial ombudsman service
Private or individual small companies disputes
Max award of 150k

Question 11

FSCS

Answer 11

Under FCA control
Covers claims against firms which can’t pay e.g. Insolvent
Private individual and small business
Policyholders covered
90% of claim for general, 100 for long term
Levy on firms provides compensation pot
Lloyds has own central fund