Regulations Flashcards
When did the FCA take over regulation of consumer credit activities?
Took over from the Office of Fair Trading - 1st April 2014
What are the 3 operational objectives?
1) Secure degree of protection for customers
2) Protect and enhance the integrity of the UK financial system
3) Promote effective competition
Consumer Credit activities include
Selling on credit Hiring or leasing out goods for more than 3 months Lending Money Issues credit cards or trading checks Arranging credit for others Offering hire purchase terms Collecting debts Helping people with debt problems or advising on credit standing
What are the 6 outcomes of Fair Treatment of Customers?
1) Customers can be confident they are dealing with firms that the fair treatment of customers is central to corporate culture
2) Products and services marketed are designed to meet the needs of the customer
3) Consumers provided clear information
4) Where consumers receive advice, advice is suitable
5) Consumer are provided with products that perform the way they expect
6) Consumers do not face unreasonable post sale barriers
What is the accounting treatment for HP?
Depends on the characteristics of the HP, if their is a nominal sum at the end to own, it is like a finance lease rather than an operating lease
How do some banks operate overseas?
Either through passporting or a banking licence
What is passporting?
An EU bank can open offices in any other EU country, without requiring a licence in that country, it will be subject to the need for authorization in its own member state.
