The Regulatory Environment Flashcards
What does the S19 FSMA 2000 state?
No person may undertake a specified activity in a specified investment unless authorised or exempt
What is the PRAs objective?
To promote the safety and soundness if PRA authorised firms
What is the FCAs operational objectives?
Consumer protection
Integrity
Competition
What is the FCAs strategic objective?
To ensure that relevant markets function well
What are the 4 general powers of the FCA?
Grant, vary, or withdraw part 4A authorisation, approval, and recognition.
rule making for the above
Prosecutes for financial crime
Supervision, enforcement, sanctions, and disciplinary action
What is the Temporary Product Prevention Rule?
Products can be banned for up to 12 months without consultation.
This power is given by FSA 2012
What are the seven blocks of the FCA handbook?
High level standards Prudential standards Business standards Regulatory processes Redress Specialist sourcebooks Listing, prospectus and disclosure
What are the six TCF outcomes?
- Fair treatment of customers is central to the corporate culture of all firms.
- Products and services meet the needs of identified consumer groups and are targeted accordingly
- Consumers are provided with clear information before, during, and after the point of sale
- Any advice is suitable and takes account of their circumstances
- Products and services perform as firms have led consumers to expect
- Consumers do not face unreasonable post sale barriers imposed by firms to change product, switch provider, submit a claim or make a complaint
What are the FCAs three pillars of supervision?
- Firm systematic framework (proactive)
- Event driven work (reactive)
- Issues and products (thematic)
What are the three types of written notices which can be issued by the FCA?
Private warnings - not to take formal action
Warning notice - action is proposed
Decision notice - issued once RDC have reviewed representations relating to warning notice
What activities can be passported to the EEA?
Dealing Arranging Managing Advising Operating a multilateral trading facility
What activities are excluded from needing a license under part 4A?
Newspapers Television broadcasts Providing information Unpaid trustees Employee share schemes Dealing as a principal and end user
What specified investments can be passported to the EEA?
Shares/depositary receipts Debt instruments Units in collective investment schemes Options Futures Contracts for difference
Investments excluded from needed a license under part 4A are:
Property Tangible assets Currencies Premium bonds NS&I products
What is the penalty for contravening the general prohibition?
2 years in jail and/or an unlimited fine
