Chapter 7 - Regulatory processes, systems and controls Flashcards
If a risk comes from a certain country, do you comply with their rules?
Yes
Does Lloyd’s have a centralised department to notify syndicates of changes to regulatory processes?
Yes
What is Solvency 2?
Balance between assets and liabilities
EU solvency rules
Does the PRA need additional ‘padding’ for insurers?
Yes and varies depending on the COB
Why is Solvency 2 in the EU good?
Better regulation
Integration of EU market
Policyholder protection
Competitiveness of EU insurers
Why are sanctions put in place?
Political pressure
Concept for democracy
Human rights
Peace in a region
Who is responsible for UK sanctions?
Office of Financial Sanctions Implementation (OFSI) - guidance on website
in HM Treasury
Government
Can Sanctions be lifted?
Yes e.g., Haiti
Does a UK firm with US parent company have to deal with US sanctions?
Yes
What act restricts the conduct of business by US entities with Cuba?
Helms-Burton Act 1996
What are individuals who are sanctioned called?
SDNs - specially designated nationals
Where to find out about sanctions?
- US Department of Treasury
- HM Treasury
- OFSI
- OFAC - office of foreign asset control
- Crystal - Lloyd’s
Act for export controls
Export Control Order 2008
Military goods
Category A and B - different levels
When did the Data Protection Act 2018 (DPA 2018) come into effect?
May 2018 with the EU GDPR
What is the fine if a company breaches data protection act?
£17.5m or 4% annual turnover
What is the 3 stage process of money laundering?
Placement - cash in
Layering - complex transaction
Integration - clean money
What are money laundering offences?
Guilty of concealing, transferring, reconverting, removing money
Making arrangements
Acquiring/using criminal property
What is the maximum money laundering prison sentence?
14 yrs - fine or both
Is it a money laundering offence of the FCA if you fail to report or tip off?
Yes
What is the act to recover proceeds of criminal activity?
Serious Crime Act 2007
National Crime Agency
How was financial crime defined?
Financial Services and Markets Act 2000 (FSMA)
Should you report directly to the NCA or MLRO?
MLRO - discharges legal responsibility
How long should client verification records be kept for?
5 years
