Regulatory Context Flashcards
What is the FPC?
The Financial Policy Committee has the primary objective of identifying, monitoring and taking action to remove or reduce systematic risks to the UK financial system. They have a secondary objective to support the economic policy of the Government. They have a statutory obligation to consider the impact of its policies on economic growth.
What is the PRA?
The Prudential Regulation Authority enhances financial stability by promoting the safety and soundness of PRA-authorised persons, including minimising the impact of their failure.
What is the PRC?
The Prudential Regulation Committee took control of the PRA’s most important financial stability and supervision policy decisions, it was created by the Bank of England and Financial Services Act 2016.
What is the FCA?
The Financial Conduct Authority is responsible for the regulation of conduct of business issues for all authorised firms as well as prudential regulation for firms that are of limited systematic importance (like insurance intermediaries).
What is the FSMA?
The Financial Services and Markets Act (2000) was amended to tackle the legacy of the financial crisis that started in 2007 and sets out the regulatory framework that has applied since 1 April 2013.
What is the FOS?
The Financial Ombudsman Service was established under the FSMA to help resolve individual disputes between a complainant and a financial services firm.
What are the Bank of England’s objectives?
1- Monetary stability: stable prices and confidence in the currency;
2 - Financial stability: detecting and reducing threats to the financial system as a whole, this is delegated to the FPC.
What are the FCA’s objectives?
1 - Consumer protection;
2 - Integrity of the UK financial system;
3 - Promoting effective competition in the interests of consumers
What are the secondary objectives of the PRA?
1 - Ensuring that PRA-authorised firms carry on in a way which avoids adverse effect of the stability of the UK financial system;
2 - Minimising the adverse effect that the failure of a PRA-authorised firm could be expected to have on the stability of the UK financial system;
3 - Contributing to the securing of an appropriate degree of protection for those who are or may become policyholders
What is the ICOBS?
Insurance: Conduct of Business Sourcebook applies to the selling and marketing of general insurance and pure protection life insurance
What are the ways the ICOBS applies to group risk businesses?
1 - Insurance meditation activities;
2 - Effecting and carrying out contracts of insurance;
3 - Communicating or approving a financial promotion
What is a financial promotion?
It is an invitation or inducement to engage in an insurance activity that is communicated in the course of business. The media of communication can include social media, email, television and radio advertising, and print media.
What is money laundering?
It is the process by which the proceeds of crime are legitimised to disguise their illicit origins.
It is not just the money in the form of cash or deposits with a bank that is laundered, it can also be any form of criminally obtained property.
What is fraud?
The obtaining of goods, services or money by deceptive means. There are three ways of committing fraud:
1 - By false representation;
2 - By failing to disclose information;
3 - By abuse of position
When must a firm apply Customer Due Diligence (CDD) measures?
1 - When the firm establishes a business relationship;
2 - When it suspects money laundering;
3 - When it carries out an occasional transaction;
4 - When it doubts the accuracy of information obtained for identification or verification
