Topic 10 Flashcards
The 3 core objectives from the 1999 paper re economic rationale for fin reg lead to the need for 2 types of reg….
Prudential reg- eg hold suff funds to cover losses due to borrower defaulting
Conduct of bus reg- bus practices when dealing with C
What 3 core objective did the economic rationale for fin reg identify?
Sustain systematic stability
Protect the C
Maintain safety and soundness if fin institutions
June 1998.
Reg tranfsered from boe to new single reg- fsa
FSMA 2000 did what
Provided the framwork to allow the fsa to become the single reg
When did mortgages and ins come under fsa?
Oct 04
Jan 2005
Fsa exempt persons comprise of(3)
Appted reps
Those cover by 2 ndary reg- boe
Inv exchange or clearing hse
When do 3 members of the tripartite system meet?
Bow, treasury and fsa senior reps meet monthly or in an emergency
The tripartite est a div of responsibilty based on 4 principles
Accountability- well defined responsibilities
Transparency-divisioj of resp must be clear to parliment, market and public
No duplication- of roles
Info exchange
BOE responsibilites
Macroprudential- stabilty of FS as a whole
Monetary policy
Advises the treasury of problems
FSA responsibilties
Microprudential
Authorises and superises insitutions and deals with prolems arising from auth firms and indiviuals
Treasury responsibilties
Overall oversight of fin reg
No op responsibilties for activities of fsa or boe but expects to be alerted
The banking act 2009 affect the boe how
Increased its power by creating..
Special reslition regime- for dealing with distressed banks- last resort
And giving boe
A statutory fin stabilty objective
Fsa a govmt body?
No its a ltd co but has statutory powers
Fsa board appnted by?
Treasury
Fsa 3 statgic aims…
Promote efficient orderly and fair markets
Help retail c achive fair deal
Improve their bus capability and effectivness
4 statutory obj of fsa are
Market confidence-fair effective and transparent
Fin stability
Consumer protection- appropriate level of protection depending on risk, expertise, need
Reducing fin crime
Fin services bill will result in…
Fsa will cease and role will be div bet PRA and FCA
PRA?
Subs to boe
Pru oversight of uk banks and insures the statiblity of fs
1 obj- to promote the safety and soundness of reg firms
FCA?
Ind ltd co
Reg conduct of bus of retail fin services firms
And pru response for those not covered by PRA
FCA- 3 operational objectives…
Efficiecy and choice in markets
Appropriate degree of C protection
Enhance integrity in FS
Main provisions of cca 2006
No limit to loan covered
> £25k to small bus exempt as are partnerships > 3 members
Complains to fos
Increase fair borrowing
Easier to challege unfair lending and loan agreements
Pensions regulator stat objectives
Protect benefits of work based schemes
Promote good admin of work based sch
Reduct risk of situation leading to claims for compensation
Maximise employer compliance eg auto enrollment
Pensions reg
Power fall into 3 cats, these are
Inv scheme to monitor risk- schemes must make reg returns and inform reg if cant meet the needs
Putting things right
Acting again avoidance- employer avoiding contribution obligations
Banking code regime
Replaced banking code in nov 09 Applies to reg activty of accepting deps Includes: full app of fsa princ of bus Payment service regs Bcobs
BCOBS
Souce book- accepting deps Rules concern: Communication- promos Information comm, stats Post sale req- fair service, moving accts, lost/dormant acs Unauth pymts Cancellation and right of cancellation Advance notification of rate changes, end of bonus rate etc
Supply of good and service act
All contract supplying goods and service, incl fs
Unless specific clauses, the act assumes the following is implied in the contract:
Service perf reasonable care
With reasonable time
Charge reasonable
Reg activities incl
Accepting deps Insurance contracts Dealing in investments Managing invs Collective inv schemes Stakeholder and pers pension plans Inv advice Mort lending and admin Mortgage advice and arranging Gen ins advice and arranging
Fsa 2 set of principles are?
Princ for bus
Pricnc for approved persons
