Financial Services

Question 1

What are the financial services regulatory system legislations?

Answer 1

• Financial services and markets act 2000.
• Financial services act 2012.
• Bank of England and financial services act 2016.

Question 2

Who are the prudential regulation authority?

Answer 2

They focus on prudential matters. Issues such as levels of capital, solvency and risk management.

Question 3

List the UK financial sector authorities.

Answer 3

• Financial conduct authority.
• Prudential regulation authority.
• Bank of England.
• Financial policy committee.
• HM treasury.

Question 4

Who is ultimately responsible for the regulation of financial services in the UK?

Answer 4

Chancellor of Exchequer.

Question 5

What is the purpose of the authorities?

Answer 5

They work together to ensure a smooth, efficient and effective running of the UK’s economy and the financial sector.

Question 6

What are the operational objectives of the FCA?

Answer 6

1) Protect consumers.
2) Protect financial markets.
3) Promote competition.

Question 7

What regulated activities do the FCA conduct?

Answer 7

Dealing in, arranging, managing or giving advice on:
- Banking.
- Insurance.
- Investment management.
- Pensions.
- Home finance.

Question 8

What are the codes of conduct for the FCA?

Answer 8

1) Must act with integrity.
2) Must act with due skill, care and diligence.
3) Must be open and co-operative with the FCA, PRA and other regulators.
4) Must pay due regard to the interests of customers and treat them fairly.

Question 9

Examples on codes of breach of conduct.

Answer 9

• Insider dealing.
• GDPR.
• Money laundering.
• Misleading financial promotions.
• Financial incentives encouraging staff to mis-sell.
• Providing unauthorised advice.
• Overstating past performance figures of fund performance to induce consumers to invest.
• Misleading conduct.