Brainscape's Knowledge GenomeTM

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


See full index

The Financial Services and Markets Act 2000 and Financial Services Act 2012 > Section 4 > Flashcards

Section 4 Flashcards

You may prefer our related Brainscape-certified flashcards:
SAT® Prep flashcards
1
Q

• Powers of enforcement officers (S165)

A
  • Enter the premises of an authorised firm without notice
  • Demand documents, file, tapes, data
  • Interview any employee
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

The FCA/PRA has the legal power to demand information/documentation:

A
  • Must be provided within a reasonable time period (S165)
  • Direct the firm to appoint competent persons to provide FCA/PRA with any required
    information (S167)
  • Appoint a third party to carry out the investigation (S168)
  • Failure to co-operate is a criminal offence (S177)
  • Providing false or misleading evidence is a criminal offence (S177)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Powers of enforcement officers

A

The enforcement officers have the power to interview any employee, not to investigate any employee – they can only investigate approved persons.

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

S166, S167 & S168 of FSMA 2000

Supervisory and enforcement powers:

A
  • S166 – Appoint a skilled person to provide a report on any matter required.
  • Enforcement powers only
  • S167 – Appoint investigators for a general investigations, e.g. state of the business, culture of the business
  • S168 – Appoint investigators for a specific breach, e.g. misleading the regulator, fraudulent act, etc.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Regulatory Decisions Committee (RDC)

A
  • Exercises certain decision making powers on behalf of the FCA/PRA
  • Appointed by the FCA board
  • Accountable to the FCA board
  • Only the chairman of the RDC is an FCA employee
  • The FCA must give a firm at least 28 days to respond to a warning notice
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Tax and Chancery Chamber of the Upper Tribunal (TCCUT)

A

– Provides a forum for independent review of FCA/PRA decisions
– Totally outside the management structure of the FCA/PRA
– Forms part of the Ministry of Justice’s tribunal service

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

Issuing notices

A

Although the RDC is given the role of issuing notices it is possible for the FCA/PRA to do so instead.

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

Private warnings

A
  • Where the regulator decides not to take formal disciplinary action
  • Remains on the firm’s and individual’s disciplinary record
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Warning notice (can be published with recipient consent)

A
  • Alerts recipient that action is proposed and why
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Supervisory notices

A
  • Alternative to warning notice
  • Aim is preventative rather than disciplinary
  • Action can be effective immediately
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Decision notice

A
  • Issued when the RDC have reviewed representations relating to warning notices
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Final notices (published)

A
  • Issued to make a decision or supervisory notice final and operational
  • States the date when action takes effect
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Notice of discontinuance

A
  • Issued at any point during the investigation process

- Confirms that the regulator will proceed no further with the investigation

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

Statutory notices

A

Some of these notices are referred to as statutory notices. These are:
• Warning notices
• Decision notices
• Supervisory notices
Private warnings, further decision notices, notices of discontinuance and final notices are also issued by the regulator, but these are not ‘statutory notices’.

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

Regulatory disciplinary measures

A

Withdrawal or variation of authorisation or approval
Prohibition
Restitution order
Public censure, statements of misconduct and financial penalties
Prosecution

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

Prohibition Order

A
  • The prohibition is defined under S56 of FSMA 2000
  • It can be issued to an individual only
  • There are many levels of prohibition, from prohibiting a person from conducting a particular activity, to preventing a person conducting all regulated activities
17
Q

Vary Part 4A permission

A
  • Appears to be failing or likely to fail to meet the threshold conditions
  • Appears to have significantly breached Principles for Businesses 6 to 10
18
Q

Withdraw Part 4A permission

A
  • Non-compliance with regulations or regulatory bodies
  • Failure to maintain resources and/or capital
  • Non-payments of fees
  • Repeated other failures
  • Cease to operate
19
Q

Powers of intervention over products and financial promotions under FSA 2012

A
  • FCA can ban products posing unacceptable risks to consumers
    • Products can be banned for up to 12 months without consultation
  • FCA can ban financial promotions deemed to be misleading
    • No need to go through normal enforcement process (too slow)
20
Q

Bank of England Enforcement Decision-Making Committee

A

The PRA delegates decision-making powers to the an Enforcement Decision-Making Committee (EDMC) for the PRA enforcement regime.
Like the RDC, the EDMC process is administrative, not judicial. It is not an appeal body.

The Financial Services and Markets Act 2000 and Financial Services Act 2012 (4 decks)

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