Need to know Flashcards
what are the statutory objectives of the FCA
- ensure that relevant markets perform well
- consumer protection
- integrity of financial system
- competition
what can the FCA not do
- delegate their legislative role
- put an individual into jail (they can prosecute)
- can not award an injunction
- can not award a restitution order
what is the FCA’s approach to regulation
principles based approach
what are the FCA’s 3 pillars of supervision
1 - firm systematic framework (prevent)
2 - event driven work (react)
3 - issues and products (resolve/fix)
who are the regulatory bodies
FCA
PRA
ESMA
Information Commissioners Office
CMA
TCCUT
Pensions regulator
FCA firms are assessed by the FCA for part 4a permisson
Location of offices
Effective supervision
Appropriate resources
Suitability
Business model
who assesses legal status for part 4a permission for dual regulated firms
PRA
who assesses the location of office for part 4a permission for dual regulated firms
PRA
who assesses effective supervision for part 4a permission for dual regulated firms
FCA / PRA
who assesses appropriate non financial resources for part 4a permission for dual regulated firms
FCA
who assesses prudent conduct for part 4a permission for dual regulated firms
PRA
who assesses suitability for part 4a permission for dual regulated firms
FCA/PRA
who assesses business model for part 4a permission for dual regulated firms
FCA / PRA
what are MiFID activities
deal, arrange, manage, advise
what is the purpose of EU MiFID legislation
to harmonise the trading rules in EEA member states
the statement - a firm must take reasonable care to ensure the stability of its advice and its discretionary decisions for any customer who is entitled to rely upon its judgement - applies to which business principle
9: customer relationship of trust
how do you remember the business principles
I - intregrity
See - skill, care and diligence
Many - management
Fair - financial prudence
Maidens - market conduct
at the 5c’s - customer interest, communicate, conlficts of interest, client assets,
regatta - relationship with regulator
for an individual what principle of business rules apply
I - integrity
See - skill, care and diligence
Many - management and control
Fair - financial prudence
Maidens - market conduct