The Regulation Of Financial Services Flashcards
What is the objective of the Financial Services Markets Act?
To bring together regulation of the sector under one regulatory system
What is the Financial Policy Committee?
Within the Bank of England which looks out for emerging risk to help support financial stability
Who are the PRA?
Prudential Regulation Authority - prudential regulation of major financial firms
Who are the FCA?
Financial Conduct Authority - conduct regulation of all doesn’t and prudential regulation of small firms
Who are the UK Financial Authorities?
HM Treasury
Bank of England
Financial policy committee
What are the objectives of the PRA ?
Primary - promote safety and soundness of these firms
Secondary objectives - ensuring the PRA authorised person carry on in a way which avoids adverse effects on the stability of financial services
What are the FCA three operational objectives?
Protect consumers
Protect financial markets
Promote competition
What are the 8 FCA regulatory principles?
- Efficiency and economy
- Proportionality
- Responsibility of consumers
- Responsibility of senior management
- Openness and disclosure
- Transparency
- Sustainable growth
- Recognising the differences in the businesses carried on by deferent regulated persons
What are the main EU led directives?
Markets in financial instruments directive
Insurance distribution directive
Capital requirements directive
Fifth money laundering directive
Alternative investment fund manager directive
Passporting rights arise under EU single market directive
Who are the European Supervisory Authorities?
Create a single EU rule book and oversea the regulation of EU financial services
What is the Markets in Financial Instruments Directive?
Sets out high level provisions and COB requirements for firms
What firms are not subject to MiFID?
Investment firms who don’t hold money
What is the insurance distribution directive?
Aims to make it easier for firms to trade across boarders and sets out consumer protections
What does the Mortgage Credit Directive apply to?
First and second charge mortgages
What’s the maximum fine the pension regulator can impose?
Individual £5,000 company £50,000
