The UK Financial Services Industry: An Overview Flashcards
What do banks do with the money they receive into current accounts?
Use it to make a return for itself. Eg lending it and charging interest
What is the main purpose of a gilt?
Function as a loan to government
Apart from physical assets, what else can be insured?
Earnings, profit potential, financial transactions
What are the 4 essential functions of the financial services
- Vehicles to protect savings and channel them into capital management
- Balance savers desire of access to money and borrowers need for long term funds
- Allow insurance against risk
- Investors can disperse risk
What are the two objectives of capital markets
To allow investors to invest in assets to produce the potential for real growth
To support the need for companies to raise money without borrowing from a bank
What are the 2 different types of financial instrument?
Shares and fixed interest stocks (bonds)
What are the 3 main European regulatory bodies
EBA, ESMA, EIOPA (the ESAs)
What regulatory body is responsible for prudential regulation of banks and large investment firms
PRA
What regulatory body is responsible for conduct
FCA
Who regulates payment systems
PSA
Who monitors and facilitates payment systems
Bank of England
What are the core services offered by banks and building societies
Current accounts
Deposit accounts
Wills and executors hip
Mortgages and loans
What are the indirect services offered. Y banks and building societies
Portfolio management
Stockbroking services
Collective investment services
Insurance and pensions
What was the key Euro regulation in 1999
FSAP
Who is ultimately responsible for the regulation of financial services
The chancellor of the exchequer
