Chapter 8 Law and regulation Flashcards
Which body that is part of Bank of England is responsible for micro prudential regulation of systemically important firms i.e make sure insurance companies are solvent
Prudential Regulation Authority
Which body that is part of Bank of England is responsible for conduct of business across the financial services industry and prudential regulation of small firms
Financial Conduct Authority
Which body within the Bank of England is responsible for macro prudential regulation and watching for emerging risks to UK’s financial systems
Financial Policy Committee
What are the three stages of authorisation for an intermediary?
Make application to FCA
Assessed by FCA
Authorised
What are the FCAs three operational objectives?
Consumer protection
Protecting integrity of financial system
Competition - promoting efficiency and choice in market
What are the FCA’s 11 principles
Integrity Skill, care and diligence Management and control Financial prudence Market conduct Customers' interests and treat fairly Communications with clients Conflicts of interest Customers relationships of trust Client's assets Relations with regulators
When was the Approved Persons regime replaced by the Senior Managers and Certification Regime?
9 December 2019 for solo regulated firms
What are the three key elements of the SMCR
- Individual and Senior Manager Conduct Rules
Minimum standards of behaviour
2, Senior Managers Regime
Approved to undertake Senior Manager Function
Statement of responsibilities - Certification Regime
Not senior managers but job has big impact on customers, market, firm
Roles are called Certification functions
Must be fit and proper
Which body challenged the regulators view that PMU should not be regulated as a protection product
Financial Services Consumer Panel
What are the key requirements of the Insurance Distribution Directive regarding training and competenec
15 hours training and CPD Knowledge on Insurance market Claims and complaints Business ethics and conflict interest management
How many hours of cpd is required by the Insurance Distribution Directive
15
Which body has code of practice stating that its members
should provide a Consumer Guide to personal customers considering purchasing PMI
Association of British Insurers (ABI)
What document includes Private Medical Insurance Common definitions and information and examples of how cancer claims are dealt with under PMI
ABI Statement of Best Practice (SoBP)
Which body resolves the “relatively few” complaints on PMI insurance from individuals who are not satisfied with their insurers response to their claim
Financial Ombudsman Service
Which scheme funded by a levy protects customers if their insurer goes out of business?
Financial Service Compensation Scheme
Which Act gives individuals the right to access reports provided by medical practitioners for employment or insurance purposes
Access to Medical Reports Act 1988
Access to Medical Reports Act 1988 if an individual asks a medical practitioner to amend a medical report what are the medical practitioners two option?
They can amend as requested
If they do not agree attach a statement to the report giving the individual’s views
Under the Access to Medical Reports Act 1988 how long does a medical practitioner have to keep a record of a report submitted for employment or insurance purposes
6 months
What Act established the right for individual to access their health records its main provisions being incorporated now in the Data Protection Act 2018
Access to Health Records Act 1990
What Act deals with discrimination
Equality Act 2010
Can an insurer treat disabled people less favourably
Only if can be justified on basis of statistical information
Which case established that insurers can not in any circumstances discriminate on gender
Test Achats
What information does the GDPR apply to
Personal data including IP addresses
What is sensitive personal data under the GDPR?
Race Ethnic origin. Political opinions. Religious beliefs or other beliefs of a similar nature. Trade union membership. Genetics Biometrics Physical and mental health. Sexual life. Sexual orientation
What are the 6 GDPR Data Protection Principles?
Fairly and lawfully processed Processed for limited purposes Adequate, relevant and not excessive Accurate and up to date Not kept longer than necessary Processed in secure manner
Under GDPR how does a firm demonstrate “lawful processing”?
Identify the lawful purpose for processing
Document it
Under GDP what must be freely given specific informed and unambiguous?
Consent
Identity 8 rights of Individuals under GDPR
The right to be informed. The right of access. The right to rectification. The right to erasure. The right to restrict processing. The right to data portability. The right to object. Rights in relation to automated decision making and profiling
If an individual asks an organisation why it is using or storing their data it is known as a what?
Subject access request
What information does an individual have a right to under GDPR
Structured or unstructured?
Structured
Following a subject access request if a person asks for a correction to be made what must the holder do?
make the correction if they agree
make a note if they are not satisfied the information is inaccurate
supply applicant with copy of correction or note
What act outlines a statutory framework to protect people who lack capacity to make decisions
Mental Capacity Act 2005
What Act deals with non disclosure by consumers
Consumer Insurance Disclosure & Representations Act 2012
Under the Consumer Insurance Disclosure & Representations Act 2012 what is insurer’s remedy for misrepresentation which is honest and reasonable
None insurers must pay claim
Under the Consumer Insurance Disclosure & Representations Act 2012 what is insurer’s remedy for misrepresentation which is careless
Insurer can offer compensatory or proportionate response based on what they would have done if consumer had taken care to answer accurately eg if they would have excluded the condition they can refuse to pay claims for that condition but have to pay other claims.
If they would have charged a higher premium they can proportion down the claim
Under the Consumer Insurance Disclosure & Representations Act 2012 what is insurer’s remedy for misrepresentation which is deliberate or reckless
Can treat policy as if never existed and deny all claims
Which Act relates to disclosure for commercial customers purchasing Group PMI?
Insurance Act 2015
