Topic 24 - Other Regulation Affecting The Advice Process Flashcards
GDPR
General data protection regulation introduced in 2018 applies to personal date can be collected manually or automated
What are the data protection principles
It related to the processing of GDPR
- Processed fairly to individuals
- Collected for legitimate purpose
- Info has be relevant to the process
- Kept accurate and up to date
- Kept for no longer than necessary
- Process ensured security to personal data
How is the GDPR enforced
The Information commissioner is responsible for overseeing the application of GDPR.
firms should report GDPR breaches to information commissioner
What is the role of the pension regulator
The regulation of the work based pension as-well as some personal pension schemes
What is a direct pay arrangement
Employer collects employee pension contributions from their salary and pays them over to the pension provider
What is the pension protection fund
Established by the pensions act 2004, it’s designed to protect members of the private sector who have a pension scheme and their company becomes insolvent and can’t maintain full benefits
What is electronic money (E-money)
Electronically stored money issued on receipt of funds for the purpose of making payment transactions
Electronic money regulations 2011
The 2nd electronic money directive.
It introduced new requirements for electronic money issuers and new authorisation and prudential standards for electronic money institutions.
Investment services directive (ISD)
Into force in 1996. Aim was to allow investment firms operate in different European states
The markets in financial instruments directive (MiFID)
Replaced the ISD. Applies to firms that provide services to clients in relation to tradable financial instruments.
DOES NOT INCLUDE: life assurance, pension or mortgages
What is the MiFID II
Launched by the European Commission to improve the functioning of financial markets and fix issues of MiFID after the financial crisis
Undertakings for collective investment in transferable securities (UCITS)
This directive applies to regulated investment funds that can be sold to the general public throughout the EU
Alternative investment fund managers directive (AIFMD)
This directive applies to the managers of AIFs that are sold to professional investors.
Insurance mediation directive (IMD)
Came into force in 2003. Win to establish the freedom for insurance intermediaries bro provide services in all states of the EU
Insurance distribution directive (IDD)
Introduced in 2018 to strengthen and solve any issues with IMD
