Financial Services Flashcards
Who are the Financial Conduct Authority?
Give an example of what tasks they do.
Body which aims to improve working of financial markets and ensure consumers get a fair deal.
- Consumers are protected, financial system is enhanced and there will be effective competition in the market place.
Example - oversee the design of products. Ban certain products or have them withdrawn from the market. Ensure firms don’t exploit consumers personal conditions.
Who are Financial Ombudsmen service?
State two advantages of using them.
Give an example of what tasks they do.
Set up by the parliament. They help resolve disputes between individuals and financial service providers. They make the final decision on the case.
Pros - They are free and fair for everyone. Quick and useful, with lots of communication. Trained advisors who can give expert advice. Accessible to anyone.
Example - Listen to dispute, understand what’s happened, provide an unbiased opinion, identify if valid cause for a complaint and support legal action.
Who are Citizens Advice?
State two advantages of using them.
Give an example of what tasks they do.
Run by charities. Offer free and impartial advice to individuals on legal, financial, consumer and other problems. Located across England and Wales.
Pros - Many tools and high accessed info. Immediate results. Alternative to seeing a lawyer, cheaper. They care and do everything they can plus more.
Example - Resolve issues to the best of their ability. They offer a large amount of generic advice through their website plus individual advice face-to-face, email or phone.
Who are Independent Financial Advisors?
State a pro and a con of using them.
Give an example of what tasks they do.
Professionals who offer advice on a wide range of financial services.
Cons - may charge for their services.
Pros - having a personal IFA who will work with you over a long period of time and you can trust. Helps prepare for the future and financial control. Quality advice. Up to date info and saves individual time instead of researching.
Example - can advise on products from a wide range of products (not tied to one financial provider).
What are Price Comparison websites?
Free info available on the internet to compare prices from a range of organisations offering the same or similar products. (E.g. car insurance or mortgages).
Example - GoCompare, USwitch and Confused.com.
What are Money Advice Services?
State an advantage of using them.
Government organisation with a remit to help individuals manage and plan their finances.
Pro - Free and impartial advice.
To be abolished and replaced by a smaller organisation.
Who are Debt Counsellors?
Given an example of what tasks they do?
An individual e.g. an IFA or organisation who works to help advise individuals on how to avoid and manage debt.
Example - advice on how to reduce payments. Can be charitable organisations helping to reduce the debt. Offer help with Money Advice Services (MAS) and Individual Voluntary Arrangements (IVA).
Who are Individual Voluntary Arrangements?
Describe the process.
Government organisation that allows individuals to work with an insolvency partner to manage their debt.
Process - the individual declares themselves bankrupt and agrees to make regular payment of a pre-agreed amount to an insolvency partner. The insolvency partner shares this info amongst all of the individual creditors. All or some of the debt will then be paid.
What is Bankruptcy?
Describe the process.
What type of debts will not be cleared?
An individual formally declaring themselves as unable to repay their debts. Should be seen as a last resort.
Process - Apply by completing form online. Can get help to pay for fee. No meeting or court visit. Decisions out within 2 days. Bankruptcy lasts for 12 months.
Won’t clear certain types of debts:
- student loan
- social fund loan
- debts arising from fraud
- personal such as divorce.
