Topic 10 Flashcards

0
Q

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

A

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

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1
Q

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

A

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

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2
Q

June 1998.

A

Reg tranfsered from boe to new single reg- fsa

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3
Q

FSMA 2000 did what

A

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

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4
Q

When did mortgages and ins come under fsa?

A

Oct 04

Jan 2005

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5
Q

Fsa exempt persons comprise of(3)

A

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

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6
Q

When do 3 members of the tripartite system meet?

A

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

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7
Q

The tripartite est a div of responsibilty based on 4 principles

A

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

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8
Q

BOE responsibilites

A

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

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9
Q

FSA responsibilties

A

Microprudential

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

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10
Q

Treasury responsibilties

A

Overall oversight of fin reg

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

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11
Q

The banking act 2009 affect the boe how

A

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

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12
Q

Fsa a govmt body?

A

No its a ltd co but has statutory powers

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13
Q

Fsa board appnted by?

A

Treasury

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14
Q

Fsa 3 statgic aims…

A

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

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15
Q

4 statutory obj of fsa are

A

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

16
Q

Fin services bill will result in…

A

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

17
Q

PRA?

A

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

18
Q

FCA?

A

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

19
Q

FCA- 3 operational objectives…

A

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

20
Q

Main provisions of cca 2006

A

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

21
Q

Pensions regulator stat objectives

A

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

22
Q

Pensions reg

Power fall into 3 cats, these are

A

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

23
Q

Banking code regime

A
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
24
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 ```
25
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
26
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 ```
27
Fsa 2 set of principles are?
Princ for bus | Pricnc for approved persons