Regulation

Question 1

What is CMA

Answer 1

Competitions and market authority

Question 2

What is MiFID and 3 aims

Answer 2

‘Markets in financial instruments directive’
Aims: transparency, investor protection, market integrity

Question 3

What is ESMA

Answer 3

European securities and markets authority

Question 4

What is a SIP

Answer 4

‘Systematic investment plan’
Offers employees tax efficient shares
Reviewed every 3 years

Question 5

When do CMA investigate mergers

Answer 5

When combined company will come from 25% of market share
Turnover above £100 million

Question 6

FCAs 3 objectives

Answer 6

Consumer protection
Integrity protection
Promote competition

Question 7

Roles of PRA, FCA, FPC, BofE

Answer 7

PRA - regulates banks
FPC - macro prudential policy
FCA - regulates financial firms
BofE - sets monetary policy

Question 8

When can an acquiring company force remaining shareholders to sell

Answer 8

When acquired at least 90% of shares

Question 9

What is FCA PRIN

Answer 9

‘Principles for Business’ - sets fundamental obligations for all FCA regulated firms

Question 10

What act covers corruption, money laundering and tax evasion

Answer 10

UK Criminal Finances Act 2017
Helps regain money seized through criminal means

Question 11

How long can a customer approach Financial Ombudsman after a trade when they have complained and not settled with the investment firm

Answer 11

8 weeks