finance : regulatory bodies Flashcards
What do FCA (Financial Conduct Authority) do?
sets rules that financial providers must follow and supervises how they operate to protect customers. Protect customers from bad conduct and promote effective competition in the interest of customers.
What do PRA (Prudential Regulation Authority) do?
part of BoE and sets the rules that financial providers must follow and supervises their operations. Do stress tests. Focuses on the risks that individual providers may present to the stability of the financial services market.
What do FOS (Financial ombudsman services) do?
deals with customer complaints about products. Services are free to customers and are funded by levies. First, complain to the business. Once 6 months have passed, the case can be passed onto FOS, then FOS agrees and business is told what to do or if FOS disagrees then they can further investigate.
What do FSCS (Financial Services Compensation Scheme) do?
protects customers’ money if their provider defaults. Can repay customers’ deposits up to £85,000 if the provider goes bankrupt per account per financial institution. Up to £170,000 for joint accounts.
What do CMA (Competition and Markets Authority) do?
promotes/regulates competition for the benefit of financial consumers. They are responsible for investigating mergers that restrict competition, market studies on problems, actions on price fixing, work with gov.
What do BoE (Bank of England) do?
They are the central bank of UK, maintain financial stability and issue notes. Managing inflation rate of 2%
