Current UK Regulatory Landscape Flashcards
What are the 3 objectives of the FCA?
Consumer protection, integrity, competition
What are the two objectives of the PRA?
To promote the safety and soundness of the firms it regulates.
Facilitating effective competition.
What does the PRA regulate?
Systematically important firms and providers.
Who and how often does the FCA report?
Annually to parliament.
Regularly to H M Treasury
What are the 8 regulatory principles of the FCA?
- Efficiency and economy
- Proportionality
- Sustainable growth
- Consumer responsibilities
- Senior management responsibilities
- Recognition of business differences
- Openness and disclosure
- Transparency
What must individuals, firms and markets apply for in order to carry out regulated activities?
Part 4a permission
Who is responsible for the FCA?
H M Treasury
What is an authorised person?
The individual, firm or market which is granted part 4a permission.
What is an approved person?
A person who has been approved to carry out a controlled function within the business.
What is a fixed portfolio firm?
Largest and highest risk firms. Named supervisor within the FCA who supervises the firms.
What is a flexible portfolio firm?
They do not carry significant risks to the stability of the uk. Contact centre rather than an individual supervisor.
What are the three pillars in the pillar supervision model?
Pillar 1. Proactive firm / group supervision (fixed)
Pillar 2. Event driven / reactive supervision (flexible)
Pillar 3. Thematic approach - issues and products supervision (flexible)
What happens when a firm/individual does not agree with the decisions made by the FCA?
It can be taken to the upper tribunal where the case can be heard.
What is a civil offence?
Civil law deals with disputes between private parties.
They are likely to result in damages.
What is a criminal offence?
A deliberate or reckless act that causes harm to another person or another persons property.
Sanctions include jail time (max 7 years) but also unlimited fines.
They tend to be pursued through the Crown Prosecution Service (CPS).
