Syllabus quick-reference guide Flashcards
Describe the main provisions of the current Money Laundering Regulations
~> and their application to insurers & brokers
- Process of converting money from illegal means into legit funds (placement-layering-integration)
- Criminal Justice Act ‘93 detailed 3 principle offences (illegal to assist, tip-off or fail to report suspected laundering)
- FCA has responsibility to prevent + detect laundering
- Firms must have systems in place controlling and preventing laundering - Reporting Offer (MLRO must be based in UK, be independent and competent)
- Bribery Act 2010 introduced 4 new criminal offences (extremely wide range of offences, basically don’t accept bribes and firms must take preventative action to stop bribery/laundering happening on their behalf)
Describe the main provisions of the current data protection legislation
GDPR
- applies to UK data controllers + processors
- required firms to maintain records
- firms face legal liability if breached (holds them accountable)
- protects ‘sensitive personal data’
What are the 6 lawful basis for processing data
Consent - must be given, can’t just be pre-ticked boxes
Contract - has to be reason for asking for data
Vital Interests - necessary to protect an individuals life
Public Task - involves public interest and clear law basis
Legit Interests - must be good reason for storing data
Legal Obligation - processing is necessary for firm to comply with law
Describe the financial services regulatory requirements in relation to handing complaints
FCA monitors and supervises risk framework of business models and culture to check it’s founded on fair treatment of policyholders
All complaint files must be kept for 3 YEARS FROM DATE RECEIVED & RECORD MUST BE KEPT ON HOW IT WAS RESOLVED
How long must complaint failed be kept under FCA rules
3 years
How often do firms have to report claims files to FCA
Every 2 years
What does the Financial Ombudsman Service do
Independent + impartial
Deals with disputes for small-fry stuff
COMPULSORY MEMBERSHIP for all authorised insurers/brokers
How does the Ombudsman (FOS) resolve claims submitted to them
First goes through problem with insurer/broker to make sure all stages were followed properly in effort o resolve dispute early
IF THIS FAILS then FOS steps in, reviews dispute and decides remedy
MAX AWARD: £375,000
Used to be only £150k in 2018, can be more but this is not binding on the firm
What’s the max award the FOS could compensate a complainer for (and what was it previously?)
£375,000
Used to be £150k in 2019
What does the Financial Services Compensation Scheme do
‘Last resort’ funded through LEVY ON ALL AUTHORISED FIRMS
Covers claims when firms go under
Provides 100% protection for certain policies
What policies does the Financial Services Compensation Scheme provide 100% protection for
Compulsory policies (TP motor, employers liability etc)
Professional indemnity (all companies)
Long-term policies (pensions, life)
Claims for PH injury and sickness
What are the 5 main principles of CII Code of Ethics
1) Comply with all laws and regs
2) Act with highest ethical standards/integrity
3) Act in best interests of each client
4) Provide high level of service
5) Treat people fairly, regardless of protected categories
Define principal of indemnity
PH can claim financial compensation in event of loss
Entitled to enough money to put them in SAME FINANCIAL POSITION IMMEDIATELY BEFORE LOSS OCCURRED
What settlement options are available to insurers to provide necessary indemnity (4)
Cash payment
Repair
Replacement
Reinstatement
Explain the settlement option of cash repair
Mainly commercial policies
PHs can choose this if they don’t try trust insurers (want cash to buy new tv rather than insurers choosing an equal for them)
