Regulations

Question 1

When did the FCA take over regulation of consumer credit activities?

Answer 1

Took over from the Office of Fair Trading - 1st April 2014

Question 2

What are the 3 operational objectives?

Answer 2

1) Secure degree of protection for customers
2) Protect and enhance the integrity of the UK financial system
3) Promote effective competition

Question 3

Consumer Credit activities include

Answer 3

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

Question 4

What are the 6 outcomes of Fair Treatment of Customers?

Answer 4

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

Question 5

What is the accounting treatment for HP?

Answer 5

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

Question 6

How do some banks operate overseas?

Answer 6

Either through passporting or a banking licence

Question 7

What is passporting?

Answer 7

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.