Section 3

Question 1

The Competition and Markets Authority powers:

Answer 1

• To investigate and block takeovers or mergers if in the interests of competition and consumers
• Enforce consumer protection legislation
  • Cooperation and coordination in the financial sector
• Prosecute unlawful cartel members

Question 2

The Information Commissioner’s Office:

Answer 2

• To uphold information rights in the public interest
• To ensure data privacy for individuals
• To promote openness by public bodies

Question 3

The Pensions Regulator:

Answer 3

• To protect the members of work-based pension schemes

Question 4

The Information Commissioner enforces and oversees:

Answer 4

• The Data Protection Act (DPA 2018)

* The Freedom of Information Act

Question 5

The CMA replaced the Competition Commission and the Office of Fair
Trading. They have five strategic goals:

Answer 5

• Enforcement
• Competition
• Consumer protection
• Professional excellence
• Effective multi-disciplinary adviser

Question 6

Pension Protection Fund:

Answer 6

The Pensions Regulator attempts to maximise employer compliance with their duties to the occupational pension scheme. Where schemes fail, members can claim lost income through the Pension Protection Fund.

Question 7

The Bank of England statutory objective:

Answer 7

Contribute to protecting and enhancing the stability of the

financial systems of the UK

Question 8

The Financial Policy Committee (FPC) of the Bank of England:

Answer 8

• 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
• FPC meets four times a year, and issues biannual Financial Stability Report
HMRC
• Primary tax revenue raising agency of Government
The Upper Tribunal (Tax and Chancery Chamber)
• Hears appeals against FCA, PRA or pensions regulator decisions

Question 9

ISAs

Answer 9

HMRC directly regulates Individual Savings Accounts (ISAs) due to their tax-preferential treatment.

Question 10

Provisions of the Handbooks

Answer 10

• (R) Rules – rules are binding on authorised persons
• (E) Evidential provisions – non-binding, but show evidence required to demonstrate compliance
  with a rule
• (G) Guidance – non-binding, recommends means of compliance or courses of action to take
• (D) Directions – binding on those to whom they relate, these dictate behaviour to be taken
• (P) Statements of Principle – binding upon approved persons
• (C) Conduct – behaviour that does not amount to market abuse
• (EU) Text from EU legislation and (UK) Text from UK law – the FCA provides links to relevant laws,
  rather than copy and paste of large chunks of text

Question 11

What does S138 FSMA 2000 do?

Answer 11

S138 FSMA 2000 gives legal effect to the rules and guidance of the regulators, set out in their Handbooks

Question 12

• FCA/PRA encourage the financial industry to develop its own best practice

Answer 12

• Confirmed industry guidance has same legal status as regulator guidance