The Financial Services Sector Flashcards
- What are the 3 roles of the financial services sector
Investment Chain
Managing Risk
Payment Systems
- what is the investment chain
Provides the link between organisations needing
capital and those with capital available for investment
- What 2 ways is risk managed
- use of insurance
- sophisticated derivatives
- What 4 types of organizations do Wholesale financial market cater to
Government
Companies,
Public sector organisations,
Financial institutions
Which 2 types of customers does the retail financial cater to?
individuals
small businesses
- What are the 3 activity’s of wholesale financial market
- Raise finance
- Mange risk (derivatives, insurance)
- Invest
- what are the 4 activity’s of retail financial market
- Banking
- Lending
- Insurance
- Wealth management
what are the types of Types of Bank and Savings Institutions, What they do?
- Retail and Commercial Banks = provide Financial services + Owned by Shareholders (In person & online, all services associated retail sector)
- Savings Institutions = provide Financial services + Owned by Depositors & borrowers (In person & online, all services associated retail sector)
- Finance Companies = provide financing to Retail & Wholesale sectors, get there funding from capital market
What is the difference between retail & commercial banks and Savings institutions?
retail and commercial bank is owned by the shareholders
Savings institutions are owned by the Depositors & borrowers
How do Finance company differ from Banks & Savings institutions
Finance company get’s it’s capital directly capital markets and not from depositors
- What do investment banks do
Provide services to the Wholesale sector?
- What 3 services do Investment banks provide
1) Raise Finance
2) Aid risk management
3) Investment management
All the key wholesale financial services
- What do pensions funds do
Pension funds
- receive contributions from, or on behalf of, employees
- provide an income on to employees retirement.
- What do Fund managers do
Fund managers manage portfolios for different types of client
What are the 3 types of investment managers & who do they cater to
1) Institutional Fund Managers
- Institutions
- I.E- Company’s corporate pension fund, insurance company’s fund.
2) Mutual Fund Managers
* General Public
3) Discretionary Investment Managers
* Individual Private Clients.
- What do Custodians do
Custodians are banks that specialism in
- safe custody
- asset services
- What activity does a custodian undertake
- Arranging settlement
- reporting
- reconciliations
- What is wealth management
- Wealth management refers to the provision of financial services
- that have the goal of preserving and enhancing clients’ wealth
- What are the 2 services that comprise wealth management
- Financial advice
- investment management
- What 3 services do Financial planners provide
- Investment planning/ advice
- tax planning
- asset protection and estate
planning
- What is the FPSB
it is the certified educator body for Financial planning
- What is a CFP
professional qualification relating Financial Planning
- What are the 2 types of portfolio management
- Discretionary basis
- Non-discretionary
Explain the Discretionary basis of Portfolio management
portfolio manager makes investment decisions
