LM1 Chapter 6 - Legal and regulatory environment Flashcards
What does FCA stand for?
Financial Conduct Authority
What does PRA stand for?
Prudential Regulation Authority
What does FPC stand for?
Financial Policy Committee
What is the PRA responsible for?
Solvency and stability of those institutions which are important to financial services industry, such as banks and insurers.
What is the FCA responsible for?
Consumer protection and market regulation
What is the FPC responsible for?
Watches for systemic risks, risks that impact the whole industry
What are the three types of members that make up the Council of Lloyd’s?
Working, external and nominated
What are the two main types of regulation that Lloyd’s issues for the Market?
Byelaws and requirements
Who regulates the society of Lloyd’s?
Both the FCA and PRA as are managing agents
Who regulates the Brokers and Members’ agents?
The FCA solely do
What is the council of Lloyd’s responsible for?
Management and supervision of the Market
Who manages authorisation of insurers?
The FCA and the PRA
How does regulation work in the USA?
It is individual for each of the states
What is the FOS?
The Financial Ombudsman Service
What is the FSCS?
Financial Services Compensation Scheme
What do the FOS do?
Is a free, independent, impartial service that deals with certain disputes.
Who do the FOS work with?
Solve disputes between individual consumers or small businesses and financial organisations
How long must the complainant give the insurer to respond before getting the FOS involved?
Eight weeks
What is the maximum amount of turnover a company can have to receive help from the FOS?
£6.5 Million
What is the role of the FSCS?
Provides compensation for customers of deposit taking companies and investment firms
Covers claims
What policies is protection 100% for (FSCS)?
Compulsory insurance
Professional Indemnity Insurance
Long-term insurance (e.g. pensions)
Certain claims for injury
What policies is protection 90% for?(FSCS)
General insurance advice and arranging
What policies have no protection at all? (FSCS)
Goods in transit, marine and aviation
Credit insurance
What is run-off?
Prevents a company from taking any further business if they fail to meet requirements from the regulator
What do insurers have to ensure when writing overseas?
That they have to comply with local regulators’ requirements
What is ESG?
Environmental, Social and Governance
What is ‘whistle blowing’
Public allegation of a firm’s concealed misconduct
What Act does ‘whistle blowing’ come under?
Public Interest Disclosure Act 1998 (PIDA)
What is the SYSC?
Senior Management Arrangements, Systems and Controls
What is the MLRO?
Money Laundering Report Officer
What is the SMCR?
Senior Managers and Certification Regime
It lies in within SYSC
