Regulatory Environment

Question 1

FPC Objective

Answer 1

Identify, monitor and take action to remove or reduce systemic risks
- With a view to protecting and enhancing the resilience of the UK financial system

Question 2

FPC meetings and reports

Answer 2

Meets four times a year
- Issues biannual financial stability report

Question 3

PRA objective

Answer 3

General objective – to promote the safety and soundness of PRA-authorised firms
Insurance objective – contributing to the securing of an appropriate degree of protection for those who are or may become policyholders

Question 4

FCA statutory objectives

Answer 4

Strategic objective
* Ensuring that relevant markets function well
Operational objectives * Consumer protection
- Securing an appropriate degree of protection for consumers * Integrity
- Protecting and enhancing the integrity of the UK financial system
* Competition
- Promoting effective competition in the interests of consumers

Question 5

Three types of work

Answer 5

Proactive–pre-emptive
Reactive–emergingoractualharm
Thematic–potentialoractualharm

Question 6

Tools of supervision

Answer 6

Identify: identify where harm or potential harm is present
- Diagnose: what is the cause, the extent and potential development of the harm - Remedy: through a range of FCA actions that can be taken
- Evaluate: FCA assesses how effective these action were

Question 7

FCA Strategy for conduct risk supervision

Answer 7

Reducing and preventing serious harm
Setting and testing higher standards
Promoting competition and positive change

Question 8

PRIN 1-3

Answer 8

Integrity
2. Skill,care and diligence 3. Management and control

Question 9

PRIN 4-7

Answer 9

4. Financial prudence
5. Market conduct
6. Customers’ interests
7. Communications with clients

Question 10

PRIN 8-12

Answer 10

8. Conflicts of interest
9. Customers: relationship of trust
   10.Clients’ assets
   11.Relations with regulators
   Where Consumer Duty applies it replaces Principles 6 and 7
   12.Consumer Duty

Question 11

SYSC 4

Answer 11

General requirements
- Sound governance
- Experienced management
- Receive written reports on compliance and internal audit annually - Apportionment of responsibilities must be clear and appropriate

Question 12

SYSC 5

Answer 12

Employees, agents and other relevant persons - Skills, knowledge and expertise
- Segregation of duties
- Awareness of procedures
- Monitoring

Question 13

SYSC 6

Answer 13

Compliance, audit and financial crime

Question 14

The Competition and Markets Authority

Answer 14

To investigate and block takeovers or mergers if in the interests of competition and
consumers
- Enforce consumer protection legislation * Cooperationandcoordinationinthefinancialsector
- Prosecute unlawful cartel members

Question 15

The Information Commissioner’s Office

Answer 15

To uphold information rights in the public interest
- To ensure data privacy for individuals
* DataProtectionAct2018
- To promote openness by public bodies
* FreedomofInformationAct2000

Question 16

The Pensions Regulator

Answer 16

Regulates work-based pension schemes - Protects members’ benefits - Promotes good administration - Maximises employer compliance with obligations

Question 17

Pension Protection Fund

Answer 17

Protects the benefits of defined benefit pension schemes - Funded by DB schemes
- Accountable to the Secretary of State for Work and Pensions
Knowledge

Question 18

His Majesty’s Revenue and Customs (HMRC)

Answer 18

Primary tax revenue raising agency of Government - Shares information with financial regulators to better assess the impact of tax changes
on financial services firms - Set tax benefits and investment restrictions on Individual Savings Accounts (ISAs)

Question 19

The Upper Tribunal (Tax and Chancery Chamber)

Answer 19

Hears appeals against FCA, PRA or The Pensions Regulator decisions, e.g. - Market abuse
- Regulatory discipline
- Listing activities