The UK financial Services Industry Flashcards
Both individuals and companies have protection needs on their:
Physical assets
Earnings
Profit potential
Financial transactions
What are the two options for government borrowing?
Gilts and national savings and investments (NS&I)
How does a gilt work?
They pay fixed levels of income over regular intervals (6 months)
Which benchmark is used to measure the rate of inflation for index linked gilts ?
When and what index are they moving to?
Retail Price Index
2030 & Consumer Price Index including Housing (CPIH)
What are the two objectives for capital markets?
Enable investors to invest in assets that provide the potential for real growth
Help companies raise money without necessarily going to the bank
Capital markets introduced which to types of financial instrument?
Shares
Fixed-Interest stocks (bonds)
What are the four key components within the financial sector
Financial infrastructure
Financial markets
Financial firms
Financial sector authorities
Who overseas the payment systems in the UK?
The Bank of England
Who is the operators of the UK’s retail payment systems?
Pay.UK
Who regulates the payments system industry?
Payment Systems Regulator (PSR)
What is a over-the-counter trade? The
Participants trade stocks, commodities, currencies, or other instruments directly between two parties and without a central exchange or broker.
What are the core services of Banks and building societies?
Current accounts
Deposit accounts
Mortgages and loans
What are the main indirect services offered by banks and building societies?
Portfolio management
Stockbroking services
Wills and executorship
Collective investments
Insurance and pensions
What is a bancassurer?
A bank or building society which have set up their own insurance company which forms part of their ties or multi tied offering
What are the three EU supervisory authorities?
European Banking Authority (EBA)
European Securities and Markets Authority (ESMA)
European Insurance and Occupational Pensions Authority (EIOPA)