Revision Flashcards
The role of financial services in the uk
Provide a means for people to save and invest their wealth for the future
Allows for saving to be transferred to the broader economy through lending and investment
Allows people to transfer risk
Firms
Banks and building societies - core services: loans, mortgages - indirect services: stockbroker services, portfolio management.
Life insurance companies
Friendly societies- small mutual organisations that offer tax free savings
Financial intermediaries - financial advisory firms, restricted and whole of market
Multi distribution organisations - e.g. Tesco who offer banking services to exploit large client base
Markets
2 primary forms of markets
Over the counter i.e buyer and seller directly deal with each other
Via an exchange i.e London stock exchange
Regulators
The financial policy committee (FPC) of the bank of England
The financial conduct authority (fca) broadly concerned with the sales and marketing of financial products and services - looks after consumer
The Prudential Regulatory Authority (PRA) a division of the bank of England which covers the prudential regulation (capital and solvency) of the industry’s largest players including banks and insurers - big firms
The pension regulator (TPR) which regulates workplace pensions
Competition and markets authority - whose core responsibility are…
Investigate mergers between organisations, to make sure they don’t reduce competition
Take action against businesses and individuals that take part in anti-competitive behaviours
Protect consumers from unfair trading
Infrastructure - how does the financial system work?
Millions of transactions every day, the bank of England overseas the payment systems in the uk, companies paid by boe to handle these transactions e.g. chaps and Bacs these are clients of the payment systems regulator
UK financial services in its broader context
European banking authority
European securities and markets authority
European insurance and occupational pensions authority
European systematic risk board
European system of financial supervision
UK in global context
Financial action task force relates to money laundering
The role of the UK government in terms of policies
Fiscal policy - spending/borrowing and taxation - SPEND 100m on infrastructure to stimulate economy, creating jobs and demand. 100m tax cut increase spending. BORROWING through ns&I and gilts. Also note quantities easing - injecting cash into system
Effects of taxation….
Monetary policy - control on interest rates and money supply: out of government hands. Interest rates are set by the monetary picy committee of the bank of England and exchange rates are supply and demand
Monetary stability is a core responsibility which means the stability of the value of sterling and prices
Also consider
The ‘welfare’ provided by state ie NHS
And regulation and law making
Obtaining wants- gots = needs
Hard facts - how things are i.e how much money is in your pension
Soft facts - how do you feel about investment risk,
A suitability letter
Generated for the consumer setting out exactly why the product is appropriate for their needs
Life stages of a consumer
Vulnerable years - early years of adulthood, any loss of income serious, savings tend to be lower, high mortgage young children, protection primary need
Relaxed years 40+ - higher levels of income, children leave home, more disposable income, income protection start to overcome lice insurance, more attention on savings and retirement
Anxious years 50 plus: retirement draws near, long term care, assets to next generation, IHT planning
Pimpsi
Protection - life insurance in the main income
Income protection
Mortgages
Pensions
Savings and investments
Definition of a mortgage
Mortgage is the use of the property as collateral or security for the loan
Interest rate options for mortgages
Fixed
Variable
Capped: won’t fall below a certain level
Cap and collar: lower and upper limit
Tracker - usually variable which track boe rate
Discount - variable rate offering a discount for fixed amount of years
Deferred interest - pay less interest in early years
Equity release
Home reversion - all it part of property is sold live rent free but have to maintain house
Lifetime mortgage - loan that is only repayable after customer does it leaves to move into LTC.
Structured Vs unstructured debt
Structured same every month e.g. car repayments
Unstructured is where repayment can vary and overpayments maybe made this is more usual with mortgages
Types of pensions
State pension
Clas 1,2 and 4 needs 35 years NIC contribution post 2016 to receive 185 per week
State pension age 65, 67, 68…
Employerpension - defined benefit or final salary
Auto enrol workplace pension - under government legislation employers have to offer a workplace pension - earning more then 10k employers put in 3% and HMRC 1% employee 5 %
Personal pension & group pensions
Defined contribution benefit which receive tax relief on
Direct Investments
Equities - share in a company
Fixed interest - bonds
Property
Pensions
Isa
Derivatives
Socially responsible investing
Sustainable finance - the process of taking into account environmental, social and governance factors ‘esg’
Range of funds to help adv and clients make decisions
Positive screening
Negative screening
ESG integration
Thematic investing
IHT and tax planning
325k.nill rate band
175k property band
40% or 36% if 10k to charity
Making gift exemptions for iht
3k
Small gift of 250
Marriage 5k, 2.5k or 1k
Charities unlimited
Pet - potentially exempt transfers
CLT - 20% paid
Pet- 20% noted but not paid unles due before 7 years
Debt management and budget planning
Essential expenditure
Regular outgoings
Discretionary expenditure
State benefit
Means tested.
Contribution tested
Needs tested
Universal credit - means tested but not taxed
State sickness benefit
Employment and support allowance -
Statutory sick pay - 28 weeks 99.35pw.
Disability benefits - personal independence payment 16-64
Daily living component
Attendance allowance
State bereavement benefits
3.5k w kid plus £350
2.5 no kid plus £100
Support for mortgage interest
Up to 200k and £100 but wait time if 39 weeks
Sole trader
Self employed basis with a trading name - profits are taxed to the individual and NI is paid under classes 2 and 4
Partnership
2 or more people work together w intension of making a profit
No legal entity but both are personally joint liable, personally pay tax and NI
Limited liability partnership
Legal identity - each partner will still personally pay tax and NI but is a legal identity
Limited company
Legal identity and legal person itself, the profits are subject to corporation tax, owner may pay themselves a salary, or through dividends, company liable for debts however owner maybe used as guarantors
Public limited company PLC
Larger form if in inc business usually floated in the stock exchange, requires at least 2 directors, 2 shareholders and and allocated share capital of more than 50k, company secretary must be member of professional body, accounts must be out before an agm
Ordinary power of attorney
Simplest form - deal w financials while person has mental health, if doesn’t then it defaults
Enduring power of attorney
For if lose mental capacity the attorney continue to act on donnee behalf, court need to consent to it
Can be structured in 2 ways immediate action - straight away
Delayed action - does not come into effect until doner loses mental capacity
Lasting power of attorney
Financial and ALSO health
Lasting power of attorney will cease on
Bankruptcy of donor
Death or bankruptcy or attorney
Divorce or dissolution of civil partnership
Contracts and agency
For a contract to be valid the following needs to occur
Offer - one person other the offer the chance engage in a contract
Acceptance the other person accepts
Intention - there must be an intention to enter a contract
Consideration - there is some form of payment from one to another
Metal capacity and 18
Non disclosure
Reasonable - mistake
Careless - misread it forgot to mention
Deliberate or reckless - contract void
The law of agency - whom an agent is acting
Tied financial adviser - agent of company they represent
IFA - independent
Ties adviser - as adv is agent of insurer telling adv is telling the insurer
Independent adviser
Property and ownership
Joint tenants - 100% by each person. If one die other person gets passed 100% ownership
Tenants in common - each person owns set % and is passed to who in will
Ownership basis
Freehold - own property and land
Leasehold - own property but not land
Common hold- own property and joint own land
Shared ownership - a equity loan is provided by government to help w deposit of new build
Wills
When someone dies there property is said to pass to someone else through ‘law of succession’ how this applies depends on the person’s will.
Order of events is as follows -
Death, executors list liabilities and assets, pays IHT, grant probate, estate passed in accordance to will.
For a will to be valid -
In writing, signed, witnessed by 2 people
Can be invalidated by - physical destroyed, marriage, creation of new will.
Intestacy
Someone w no will, in this case there is a set order for it to take place, an administrator is set someone who knows person died, will ask court of letter administration.
Any joint ownership pass to survivor
Spouse and no children - pass to spouse
Spouse and children - spouse gets personal assets, and 270k plus half amount above that, children get other half split put in trust till 18
No spouse but children, children get all but on trust till 18
No spouse no children - parents siblings…
No family - to the crowne
Trusts - people involved
The settlor - person who puts assets in a trust
The trustee - manager of assets
Beneficiary - person’s who receive
Avoids probate
Looking after assets of minors
Forms of trusts
Absolute / bare trust - cannot be changed
Discretionary trust - all my friends on FB e.g.
Setting up a trust
Words - words used should show clearly that there is an intension to create a trust
Subject - the property held in the trust must be certain
Object - the persons to benefit from the trust must be certain
Administering a trust
Anyone can be a trustee providing over 18 but can be removed if
They resign
Die
Removed by courts trust act
Removed by other trustees
Bankruptcy and insolvency
Bankruptcy refers to individual
Insolvency firm
In both cases a legal arrangement to recover as much debt as possible.
Individual voluntary arrangement IVA what is it?
Alternative to bankruptcy - creditors agree not the file legal action for an agreed payment arrangement
How does an IVA work?
A vote of creditors takes place, who represent least 75% of debt. Voting to agree on IVA,
The fees associated to the arrangement are added to debt and repayment schedule is agreed
An insolvency practitioner is appointed to oversee the arrangement and report annually to creditors
The IVA will come to an end if either default of debt paid
On register of IVA and credit score impacted for 6 yrs
Bankruptcy
Where someone has at least of 5k debt and no other solutions can be found, the court will look for evidence attempts have been made to recover it
If the requirements are met the court will appoint the ‘official receiver’ to ask creditors to appoint ‘trustee in bankruptcy’ to take possession of debtor assets and seek to repay as many of the creditors, leaving only few things, tools for trade, clothes and furniture
The cost of bankruptcy how a debt is paid
Preferential debts - wages or pension contribution
Ordinary unsecured debt - any assets left split between creditors - usually last 12 months and after the person may be barred from jobs like financial services
HM Treasury
The treasury (exchequer) is a Government department responsible for public finance and economic policy, responsible for setting level of taxation and spending and is headed by chancellor of exchequer
Note: not directly responsible for fca or bank of England
Bank of England
Monetary stability - the government sets the bank a target for inflation and the bank is responsible for achieving this target, if the target is missed the governor of boe is required to write to the chancellor to explain why
Financial stability - ensuring the financial system is robust and stable, i.e set interest rates
Boe is responsible for financial policy committee and the Prudential regulation authority
The Prudential regulation authority
A limited company owned by the bank if England
Oversee the largest financial institutions over 1700 banks with 2 objectives
-the promote the safety and financial soundness of the firms
-to help secure an appropriate level of protection for consumers, also to facilitate effective competition
The PRA how the work is done?
It’s work is done at an individual level
Carries out work with a twin approach
Judgement based - excersice it’s judgement if a firm is sound
Forward looking - not only now but what might arise in the future
Focussed - as above looking at those firms and areas that pose the greatest risk
The financial policy committee
This is a macro level committee of the boe tasked with looking at the entire financial system and spitting emerging risks
Chaired by governor of boe
The financial conduct authority
Independent of the government and financed by levy on all regulated firms
Make markets function well
Protect customers
Look after smaller firms
Promote competition
Sustainable growth
Senior Management responsibility
The pension regulator
Check pensions in check from firm level fines if not individual 5k and firm 50k
The information commissioner ico
All to do with GDPR
Competition and markets authority. (Cma)
Markets are competitive, avoid any collusion between large firms…
Statutory frameworks - European supervisory authorities ESA
Treaties
Legislation
Decisions
Directives
Regulations
Markets in financial instruments directive (MiFID)
One European financial market
Remove barriers
FCA has 3 main focuses
To protect consumers
Protect integrity of financial markets
Promote competition
Obtaining FCA authorisation
Called ‘part 4a permissions’
FCA is involved in a number of key activities
Direct authorisation of those not covered by PRA.
Acting as the policeman for the financial services industry
Monitoring, overseeing other bodies like LSE
FCA activities include
Governance of product design
Overseeing corp culture
Examination of sales prices
Risk management
Prevention of crime
FCA does not cover
Buy to let mortgage
Occupational pensions
Compensation claim handlers
Reporting lines for fca
FCA report into the treasury for it’s actions although it is an independent company, FCA required to make annual reports to parliament in respect to it’s activity
FCA also has dotted line to other Bodies
FCA operates a risk based approach with a combination of the following methods
Impact - how significant is the event it it were to happen
Probability - how likely is it to happen
Proactivity - is it fair treatment to customers?
Event driven reactive work - a risk has been missed and an issue has arisen or simply due to a global event
Thematic - common themes and different sectors that could cause consumers to be disadvantaged
Banning retail products, removal of adverts, enforcement action, market intelligence,
Fixed portfolio - larger higher risk firms
Flexible - less risky
Principles of supervision FCA
10 principle approach
Ensuring fair outcomes for consumers and markets
Being forward looking and prempt
Being focussed on the big issues
Taking a judgment based approach
Firms act in the right spirit
Examine business model and culture
Individual accountability
Robust when things go wrong
Joined up approach
Open communication
Compliance monitoring FCA
Each firm is responsible for compliance, fCA can visit any time without notice, staff expected to be fully compliant
FCA enforcement
Making public announcement
Setting conditions for future business
Ordering compensation to be paid
Deathorise firms
Impose disciplinary action against firm or individual
Civil action
Criminal prosecution
FCA offences that reach court
Summary only - can be heard by magistrates
Indictable - heard by crown court w jury
Either way
Prudential regulation
Translates into the rulebook and capital adequacy requirements - in broad sense large firms need to have sufficient capital resources to meet liabilities and this is tested to stricter standards then used to
Example used can be free asset ratio
Stress tests should be completed at least annually
FCA handbook - 9 blocks
FCA block 1 - the high level standards
Big picture - principles of business
Integrity, skill care, management and control, market conduct, customer interests, conflicts of interest
Fit and proper test for approved person’s
Training and competence,
FCA block 2 - Prudential standards
This is the amount of capital the firm will be expected to gold to meet it’s obligations this measure is known as capital adequacy
Prudential sources books around this
FCA block 3 - business standards
Conduct of business sourcebooks (cobs) - rules around life and pensions arena
Insurance conduct if business sourcebooks (icobs) - IP term insurance and CIC, general insurance, pure protection, ppi,
Mortgages and home finance: conduct of business (mcob)
Right to cancel
General insurance usually 14 days
Pure protection and ppi 30 days
FCA block 4 - regulatory processes
Supervision - ensure firms are complying with their rules
Decision procedure and penalties - disciplinary actions ect.
FCA block 5 - redress and compensation
Right to complain to financial ombudsman if firm is unable to resolve,
Note complaints commissioner
FCA block 6-9
6 specialist sourcebooks
7 listing prospectus and disclosure
8 handbook guides for specialist areas
9 regulatory guide
Consumer credit - worth a mark
Consumer credit act 1974 - for anyone providing credit up to 25k
Consumer credit act 2006 - not only individuals but sole traders and partnerships with 3 or fewer partners
Consumer credit directive - aer
Unfair contract terms -concerns not transparent or prominent
At what level do FCA application fees start?
1500
What does mcob stand for?
Mortgage and home finance conduct of business
Under the mortgage market review, who is ultimately responsibility for ensuring the affordability
The lender
Both FCA and pra have statutory duty to
Contribute to protecting and enhancing the stability of the financial systems of the uk
Which directive requires larger firms to undertake detailed risk assessment and stress testing to calculate their capital requirements
Capital requirement directive
Ifa document use to show status and range of status
Initial disclosure document
Contract terms must be
In plain and intelligible language
The FCMA financial services and markets act
No one should undertake any regulated activity without Bering authorised to do so
Making an application to be regulated
No regulated activity should commence until ‘part 4a permissions’ has been received. Larger firms e.g. new insurance firms will apply to the PRA to asses capital and fca from conduct perspective. Smaller firms will only apply to fca
Applications can take 6 to 12 months
Change if status for regulatory authorisation
If a business changes its legal status eg sole trader to limited company, it will need to reapply for permissions unless one person dies in a partnership
Consequences and responsibility of becoming authorised
Compliance with regulators regulations
Ensuring firm has sufficient capital
Ensure anyone in a controlled function tile has the necessary permissions
Authorised person - not a person but rather the firm. It will be a person only if a sole trader
Approved person
This is an individual approved by the regulator to perform a controlled function an actual person who is in a senior capacity
Senior management and certificate regime
Initially to cover senior staff within large firms but now covering most people- key aims are:
Clarity of responsibility
Improved corporate governance and accountability for decision making
Clarity of who runs business
Placing emphasis on responsibility on firms rather than fca
Sm&cr identifies three types of firms in terms of application of requirements
Limited scope firms - usually small business
Core firms - subject to baseline regime
Enhanced firns - large, complex business which are subject to enhanced requirements
People should be fit and proper under sm&cr
Appointed representatives
Prevent conflict of interests
Ensure are fit and proper
Ensure principals have necessary systems and controls to be responsible for AR conduct and actions
When recruiting candidates should have the right level of experience and qualifications
Staff should show competence before being allowed to operate, managers should show a gap analysis on staff and look to improve
35 hours of CPD should be completed on a rolling 12 months basis
Inducements - a thing that persuades or leads to do something
Can’t do excessive bribes that influences a decision
Record keeping
If it is not written down it did not happen
Records should be kept indefinitely if regarding: pension transfers, free standing AVC, this is because regarded as high risk
5 years for most other cases
One exemption is financial promotions that relate to life and pension promotions: 6 years
Complaints procedure
A complaint is an expression of dissatisfaction
A complaint does not have to be valid as should not be pre judged
Info for exam r this: a small business known as micro enterprise, few than 10 staff or turnover Eur2m
A small bus w less that 50 employees or £5m
A charity w income less than £6.5m or trust w net asset under £5m
Complaints procedure
Each firm should have and publicised a complaint handling process
Make them aware covered by ombudsman
A senior member of staff should be appointed as a complaints handling function
Complaints procedure
Mandatory steps :
The customer should be sent an acknowledgement within reasonable timescale - historically 5 working days
After 4 weeks if not resolved the customer should be sent a holder letter explaining it is still being investigated
After 8 weeks or earlier if completed a letter will be sent w the final response or a holding letter explaining when firm expects to complete the process, at this point the firm should notify the customer their right to take to financial ombudsman
If the complaint is upheld they should make appropriate compensation or action
Complaints procedure
A referral to financial ombudsman (FOS) should be made 6 months of receiving the right to go to FOS or
6 years of event in question or 3 years of becoming aware
FOS is and independent adjudicator under the fca control
It’s final decision on are binding to the provider but not the complainant who can reject and take it to court
375k for cases after 1/4/22 and 170k before or after 1/4/19
Plus interest and costs
Financial services compensation scheme
Confidence would be damaged id a firm failed an unable to meet obligations as such all regulated firms required to pay a levy to financial services compensation scheme
Inve / savings - 100% on 85k
Long term ins - providers faill 100%, immediary 90%
General ins - compulsory 100%, non compuls - 90%
Pensions - insured pen scheme: 100%, SIPP - 100% up to 85k
Anti money laundering
3 stages
Placement- dirty funds placed in some sort of financial product i.e bank acc or investment
Layering - moved around system via transactions i.e. moved to account then inv product
Integration - the investment is surrender resulting in a clean cheque that can be paid into account as clean money
Proceed of crimes act 2002
Firm should have a money laundering reporting officer MLRO
Report suspension and people doing it, telling them is tipping off and an offence
MLRO will then decide if should be passed to national crime agency NCA by filing a Sus activity report SAR
Proceeds of crime act also established assets recovery agency (now part of NCA) which by obtaining court order confiscate and or tax the proceeds of crime. The agency has wide powers when obtaining the info
Data protection
Gdpr 2018 replace data protection act 1998
Data should be processed lawfully, fairly, transparent, specific to purpose, accurate and up to date, not be kept longer than needed, confidential and secure
Penalties can but high 20m or 4% global gross revenue
Information
Is stating the fact
Advice
Is the expression of opinion
Provider guidance Vs generic guidance
Provided- info supplied by representative of product provider
Generic - non product specific
MoneyHelper
Responsible to give people guidance set up by government and paid by financial services - free impartial info
Financial advisers - independent Vs restricted
Independent have whole of market advice
Restricted - tied - selling the products of a single provider OR multi tied- selling the products of provider on their panel
When an adviser operates tied or multi tied they can only recommend where demonstrate it is suitable
Cannot simply just recommend most suitable product out of options
Adviser must disclose
Level of service - will the firm offer advice or not
Basis of advice - restricted or not
Fees and commission
How to make a complaint
Loans and ownership
Regulatory status
Customer types
Retail- individuals and most smaller businesses - highest duty of care is given to retail customers as least knowledge
Professional - lower duty if care as should have sufficient knowledge
Professional broken down into 2 subsection - per se pro - banks government’s AND elective pro - other bodies
Eligible counterpart - lowest level of duty care - professional clients
Categorisation for general business insurance
Consumer - a person, not acting in respect of their business
Commercial customer- anyone not covered by advice definition
Customer - this covers consumers and commercial customer
FCA communication w customers
Be clear, fair and not misleading
FCA - communication w customers
Real time - i.e speaking - occur during normal hours
Cannot cold call
Non real time ie written Comms - must be signed off timings below
Pension transfers - indefinitely
Life and pensions - 6 yrs
Others cases for mifid - 5 yrs
All other non mifid - 3 yrs
Direct offers
Are allowed but subject to certain restrictions
Fair treatment of customers - of of the essential pillars of FCA regulation
Outcomes 1 - 6
Consumers can be confident they are dealing w fair treatment
Products and services sold are suitable
Provided w clear information
Suitable in needs of circumstances
Do not face unreasonable post sale barriers
Fiduciary relationship means trust and treating customers fairly
Demonstrating suitability - letter
Lay out customers situation and reasons for being recommended,
Needs wants gots
Risk factors of customers
Need to disclose -
Costs, product governance
Suitability
Recording of conversations
How inducements are treated
Product disclosure
Aims, risks, commitments, terms of inv, cancellation rights, complaints procedure, compensation arrangement
Application forms
Should be signed by customer After fully understood complete and filled in
Should be followed up in writing
No suitability is needed for
Top ups to existing premium policies
Increase to regular premium
Where someone outside eea and not in UK at time of agreeing recommendations
Cancellation rights
Life and pension - 30 days
General insurance 14 days
Cancellation of policies taken seriously by FCA because
Indicates consumers sold something don’t want
Records kept indefinitely for pensions, 5 years for life and pension contracts and 3 for all other cases
Acting with or against advice
Advice is not required in all cases
Nonadvised - the client is given enough info to make informed decision
Execution only- this is where no advice is given and the client is acting on own accord
Insistent customer - give advice and client does the opposite - if case adv should send letter and customer should send letter back saying not going ahead
Vulnerable clients
Driven by health, life events, poor resilience, capabikity
Reviews
Should take place annually or where change in circumstances
3 types of products to make it simple
Short term - deposit acc w minimum premium and NI more than £10
Medium term - collective inv could sit with isa wrapping not more than £20 premium
Long term - stakeholders pension w lifestyle fit in min could no more than £20
Fact finding
Basic personal information
Family details
Employment status
Income and expenditure
Loans & liabilities
Existing protection, s&I
Wills and PoA
Attitude to risk
Ethical.issues
Any other advisers
Analysing and evaluating the clients financial status
Identify - areas they need/what need
Discuss - discuss clients views
Quantify - using KYC info to agree shortfall
Prioritise - where the budget is limited decide on where to spend money from pimpsi
Implementing the financial planning recommendations
Suitability letter - should be clear, fair and not misleading
Should include- background to recommendations
Shortfalls through analysis
Product recommendations and why
Features advan and benefits
Risks
Costs and charges
tax consiquence
FCA sets principles and outcomes expected for morals
FCA principles for ethics
Integrity
Skill, care and due diligence
Management and control
Financial prudence
Market conduct
Customer interests
Comms w customers
Conflict of interests
Client assets
Relationship w regulators
Ethics by FCA for individuals
Integrity
Skill, care and attention
Market conduct
Opens n cooperation
Organisation and control
Compliance - fit and proper
Financial soundness
Senior management and certification regime
Firms must allocate prescribed responsibility across senior management
Conduct rules must be adhered to-
Corporate culture
Leadership
Strategy
Decision making and challenge
Controls
Recruitment and tandc
Reward
Bribery act 2010
Need to be compliant and ethical not just compliant
Operational implementation
Policies and procedure
Training and competence
Recruitment
Pay structure
Job description
Comms
Performance management
GCC - governance, risk management and compliance
Stakeholders and CSR
Good corp social responsibility and showing me tell me and prove it!!
Management information
Accurate
Consistent
Relevance
Timeliness
Seen
Challenged
Analysed and monitored
Acted upon
Recorded
Handling ethical dilemmas
Don’t rush to judgement find out all you can
Talk through situation
Identify ethical principles involved
Firms code of ethics
Consiquences if choice
Make decisions and share w involved
What can do to avoid in future
In terms of ethics firms are being asked to move from
Tell me and show me to prove to me
IVA individual voluntary arrangement - where payment plan set up 75% to recover as much assets
Bankruptcy - where debtor has at least 5k and no other solutions can be found
Order bankruptcy debt is paid
Cost of bankruptcy
Preferential debt
Ordinary unsecured debt
Mortgage options
Diminishing musharaka - firm buys then sells back in slices
Ijara- payments made - provider still owns till property fully bought
GRC
Governance, risk management and compliance
What is a bancassurer
Bank offering FS to the public
FC
Financial crime and relates to all 9 blocks
Maximum that the FOS can award as compensation
355,000
Law of agency
Contractual relationship between client and adv
How long does an IVA remain on a credit reference for
Least 6 years from start of IVA
Role of FCA
Make markets run when and guard dog of the industry
9 handbooks - one block has 11 principles for business
What are exempt from consumer credit act
Building societies
How often should complaints be submitted
Complaints should be submitted every 6 months and kept 3 or 5 yrs if non mifid or mifid
