Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

R01: Financial Services, Regulation and Ethics > Roles & Definitions > Flashcards

Roles & Definitions Flashcards

1
Q

Money Markets

A

Wholesale markets for commercial borrowers and lenders

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Capital Markets

A

For trading stocks and shares, fixed interest investments and derivatives

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Commodity Markets

A

For trading physical goods

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Foreign Exchange (FX) Markets

A

For trading foreign currency

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Insurance Companies

A

For insuring physical assets. These that provide capital to secure insurance policies and provide banking and investment management

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Investment Companies

A

These invest surplus funds for longer term gain

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Life assurance and Pension Companies

A

These invest their assets to meet long-term policyholder obligatoins

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Reinsurance Companies

A

Companies that provide security to diversify risk from insurance companies

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Investment Houses

A

These issue pool investments like unit trusts and open-ended investment companies (OEICs)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Role of the European Central Bank (ECB)

A

Coordinate and control monetary policy and interest rates in the EU states using the common euro currency

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Role of Financial Stability Forum (FSF)

A

Coordinates national financial authorities, makes recommendations about the global financial system

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Role of the Financial Action Task Force (FATF)

A

Sets international standards on anti-money laundering

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Role of the International Organisation of Securities Commissioners (IOSCO)

A

Brings together the world’s securities regulators to set common standards

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Role of the International Association of Insurance Supervisors (IAIS)

A

Supervises and sets common standards for the international insurance sector

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Role of the International Swaps and Derivatives Association (ISDA)

A

Represents participants in the privately negotiated derivatives industry, including interest rate, currency, commodity, credit and equity swaps

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Role of The Bond Market Association (TBMA)

A

Represents firms trading fixed-income securities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Define the International Securities Market Association (ISMA)

A

Trade association and self-regulating organisation, supervising markets in international debt

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Define the Prudential Regulation Authority (PRA)

A

Responsible for authorisation and prudential regulation of certain larger firms

19
Q

Define the Financial Policy Committee

A

A committee set up within the Bank of England to monitor the UK economy

20
Q

Define the Financial Conduct Authority

A

Regulator that has conduct and market responsibilities. Also authorises smaller firms such as financial intermediaries and mortgage brokers

21
Q

Debt Consolidation

A

Negotiating a new loan to repay an existing loan or loans, often with a lower interest rate/monthly payment

22
Q

Mortgage

A

A security offered in exchange for the loan (usually used to buy a home - the house is the security).

23
Q

Capital & Interest Repayment

A

Monthly repayments include a sum to cover a contributions towards the repayment of capital, plus a sum to cover interest

24
Q

Interest Only Repayment

A

Only the interest accruing on the loan is paid ad the outstanding capital remains the same

25
Q

Capped Mortgage

A

Guaranteed interest rate will not rise above a given level for a certain period of the loan

26
Q

Cap and Collar Mortgage

A

Interest rates stays below a limit (cap) but above another limit (collar) for a certain period

27
Q

Discount Mortgage

A

Interest rate for an initial period is reduced by a set percentage

28
Q

Euro (or other currency) Mortgage

A

Interest and capital designated in Euros (or other currency), usually to take advantage of lower interest rates

29
Q

Equity-Linked/Shared Appreciation Mortgage (SAMs)

A

Lender takes a stake in the equity. Amount loaned is less than the amount advanced for the purchase

30
Q

Fixed Interest Mortgage

A

Interest rate charged remains fixed for a given period (borrower risks interest drops vs a known liability).

31
Q

Flexible Mortgage

A

Monthly payments can be varied/lump-sum capital repayments made at anytime. Builds a reserve that the borrower can withdraw from up to original mortgage amount.

32
Q

Offset Mortgage

A

Mortgage and current account linked. Interest charged on net balance. More money in the current account reduces the mortgage.

33
Q

Tracker Mortgage

A

Variable rate mortgage with a built in link that tracks interest against an index (e.g. LIBOR)

34
Q

Lifetime Mortgage

A

A loan is taken out secured against the home

35
Q

Roll-Up Mortgage

A

Interest is added to the loan.

Client gets a lump-sum payment or a regular income and is charged a monthly or yearly interest that is added to the loan.

Initial + interest is repaid on the sale of the house.

36
Q

Fixed Repayment Lifetime Mortgage

A

Client gets a lump-sum, doesn’t pay any interest.

When home is sold, they pay a higher amount that they borrowed.

37
Q

Interest-only Mortgage

A

Client gets a lump-sum, pays monthly interest on the loan (fixed or variable).

Initial repaid on house sale.

38
Q

Home Income Plan

A

Money borrowed used to buy an annuity (regular fixed income)

Income pays interest on mortgage.

Initial repaid on house sale.

39
Q

Shared Appreciation Element

A

Lender has a share in the value of the home.

40
Q

No Negative Equity Guarantee

A

Lender guarantees that the client never has to pay back more than the value of the home

41
Q

Home Reversion Plans

A

Client sells all or part of the home in return for a cash-lump sum/regular income.

Client is still allowed to live in the house under a lease.

42
Q

Ijara

A

Monthly payments made towards buying the property are held by the firm and used to buy the home at the end of the agreement.

43
Q

Diminishing Mushkaraka

A

Each payment made buys an extra slice of the firm’s share. Client’s share increases, firms decreases and so does rent paid for use of firm’s share.

R01: Financial Services, Regulation and Ethics (9 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions