Financial Services Regulation Flashcards
What authorisation firms did the Financial Services Act bring in?
- Securities and Investment Board (SIB) - banks & building societies
- Self-Regulating Authority (SRO) - investment firms
- Recognised professional body (RPB) - solicitors & accountants
Which act did the Financial Services and Markets Act 2000 replace?
The financial services act 1986
What is the main purpose of the Financial Services and Markets Act?
To bring together all regulated financial services and activities under the financial services authority, the financial ombudsman service and the financial services compensation scheme.
What does grandfathering mean?
To copy an authorised individual, firm and market across to the Financial Services Authority.
Any individual, firm and market that was authorised and regulated under the SIB or SRO were automatically grandfathered.
Recognised professional body members had to re apply.
What is macro and micro?
Macro - high level responsibilities. No real day to day involvement.
Micro- authorities involved day to day with regulated individuals, firms and markets.
How often does the financial policy committee produce a financial stability report?
Bi-annually
What are the objectives of the FCA?
Protection
Integrity
Competition
What does the competition and markets authority do?
Ensure that there is fair competition between uk companies.
What does the pensions regulator do?
Protects members interests in any pension scheme provided by an employer.
They also keep a register of any individuals who are now prohibited from acting as a scheme trustee.
What does the information commissioners office do?
Oversee and enforce compliance of the Data Protection Acts plus the GDPR.
Which EU legislations are binding?
Decision, directives and regulations
Which EU legislations are not binding?
Recommendations and opinions.
When must decisions be implemented?
They are enforceable immediately and fully binding on individuals or member states.
When must directives be implemented?
Binding on member states from a set date. It is left to each state how they are applied. They require ratification.
When must regulations be implemented?
They take effect immediately and do not need approval. They do not require ratification.
