Topic 10

Question 0

The 3 core objectives from the 1999 paper re economic rationale for fin reg lead to the need for 2 types of reg….

Answer 0

Prudential reg- eg hold suff funds to cover losses due to borrower defaulting
Conduct of bus reg- bus practices when dealing with C

Question 1

What 3 core objective did the economic rationale for fin reg identify?

Answer 1

Sustain systematic stability
Protect the C
Maintain safety and soundness if fin institutions

Question 2

June 1998.

Answer 2

Reg tranfsered from boe to new single reg- fsa

Question 3

FSMA 2000 did what

Answer 3

Provided the framwork to allow the fsa to become the single reg

Question 4

When did mortgages and ins come under fsa?

Answer 4

Oct 04

Jan 2005

Question 5

Fsa exempt persons comprise of(3)

Answer 5

Appted reps
Those cover by 2 ndary reg- boe
Inv exchange or clearing hse

Question 6

When do 3 members of the tripartite system meet?

Answer 6

Bow, treasury and fsa senior reps meet monthly or in an emergency

Question 7

The tripartite est a div of responsibilty based on 4 principles

Answer 7

Accountability- well defined responsibilities
Transparency-divisioj of resp must be clear to parliment, market and public
No duplication- of roles
Info exchange

Question 8

BOE responsibilites

Answer 8

Macroprudential- stabilty of FS as a whole
Monetary policy
Advises the treasury of problems

Question 9

FSA responsibilties

Answer 9

Microprudential

Authorises and superises insitutions and deals with prolems arising from auth firms and indiviuals

Question 10

Treasury responsibilties

Answer 10

Overall oversight of fin reg

No op responsibilties for activities of fsa or boe but expects to be alerted

Question 11

The banking act 2009 affect the boe how

Answer 11

Increased its power by creating..
Special reslition regime- for dealing with distressed banks- last resort
And giving boe
A statutory fin stabilty objective

Question 12

Fsa a govmt body?

Answer 12

No its a ltd co but has statutory powers

Question 13

Fsa board appnted by?

Answer 13

Treasury

Question 14

Fsa 3 statgic aims…

Answer 14

Promote efficient orderly and fair markets
Help retail c achive fair deal
Improve their bus capability and effectivness

Question 15

4 statutory obj of fsa are

Answer 15

Market confidence-fair effective and transparent
Fin stability
Consumer protection- appropriate level of protection depending on risk, expertise, need
Reducing fin crime

Question 16

Fin services bill will result in…

Answer 16

Fsa will cease and role will be div bet PRA and FCA

Question 17

PRA?

Answer 17

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

Question 18

FCA?

Answer 18

Ind ltd co
Reg conduct of bus of retail fin services firms
And pru response for those not covered by PRA

Question 19

FCA- 3 operational objectives…

Answer 19

Efficiecy and choice in markets
Appropriate degree of C protection
Enhance integrity in FS

Question 20

Main provisions of cca 2006

Answer 20

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

Question 21

Pensions regulator stat objectives

Answer 21

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

Question 22

Pensions reg

Power fall into 3 cats, these are

Answer 22

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

Question 23

Banking code regime

Answer 23

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

Question 24

BCOBS

Answer 24

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

Question 25

Supply of good and service act

Answer 25

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

Question 26

Reg activities incl

Answer 26

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

Question 27

Fsa 2 set of principles are?

Answer 27

Princ for bus

Pricnc for approved persons