R01 The FCA Handbook 1 Flashcards
What are the three legal objectives for the FCA?
To protect consumers, to protect the integrity of financial markets, to promote competition
What activities fall outside of FCA regulation?
Buy to let mortgages, occupational pensions and compensation claim handlers
What are some activities that the FCA oversees
The product design, the sales process to the consumer, the corporate culture, crime prevention
Who does the FCA report to?
The treasury/ Chancellor of the Exchequer. They also make annual report to parliament
Other than the Chancellor who else does the FCA deal with?
The upper tribunal, the Competition and markets authority, the complaints commissioner
What does the financial services practitioner panel do?
Meets monthly to discuss maters that impact regulated firms and provide early input to FCA policy matters
What does the financial services consumer panel do?
A panel made of consumers. Tests how policy impacts the end consumer
What does the markets practitioner panel do?
Assess how policy impacts those involved with the markets
What does the smaller business’s panel do?
Sees how policy impacts small business’s and ensures big business doesn’t pressure them out
What are the three pillars of the FCA approach?
Proactive, event based and thematic
What are the four powers of the FCA?
Ban retail products (or place them under 12 month review), remove financial promotions, publish enforcement action against a firm and gather market intelligence
What does the fixed portfolio supervision look like?
Bigger firms with higher risk. The FCA use pillar one to proactively supervise these firms
What does the flexible portfolio supervision look like?
Smaller firms with lower risk. They are supervised through event driven and thematic work as well as educational activities. Their contact is the FCA’s customer contact centre
What is the anagram for the ten pillars of FCA supervision?
J = Judgement Based approach
I = Individual accountability for senior management
R = Robust when things go wrong
C = Communicating openly with industry, firms and consumers
C = Consistent message and approach from FCA + other regulators
F = Fair outcomes for consumers and markets
P = pre-emptive in identifying potential risks
B = big issues and root causes of problems
M = models and culture and how a firm makes money
S = Spirit. Ensuring firms act in the spirit of the consumer
What is the maximum charge for insider dealing?
7 years plus unlimited fine
