topic 5 key words

Question 1

Banking Act 2009

Answer 1

This Act provides a set of tools to allow the regulatory authorities to resolve (ie wind up) a bank or building society that is in financial difficulty in an orderly way, and so to reduce the impact of a bank failure on financial stability and bank customers

Question 2

Deleveraging

Answer 2

Reducing the amount of debt in relation to assets. In personal terms, this
might mean paying off loans, credit cards, etc.

Question 3

Financial Services
(Banking Reform) Act
2013

Answer 3

Legislation that introduced retail ring-fencing for banks and the cap on
payday lenders.

Question 4

Financial Services
Act 2010

Answer 4

Legislation that focuses on the need for banks to have a plan in place to deal with situations where they get into financial difficulty.

Question 5

Financial Services
Act 2012

Answer 5

The main Act of Parliament governing the regulation of the financial services industry.

Question 6

General Data
Protection
Regulation

Answer 6

European Union legislation implemented on 25 May 2018. In the UK, its provisions supersede those of the Data Protection Act 1998 with the creation of the Data Protection Act 2018.

Question 7

Loan forbearance

Answer 7

When a lender does not seek to repossess a property as soon as the borrower misses a few monthly payments, instead allowing the customer to stop paying or make reduced payments for a set period.

Question 8

Mortgage equity
withdrawal

Answer 8

Additional borrowing based on the difference between the value of a house and the outstanding mortgage (ie if the house is valued at more than the amount the owner has to repay on the mortgage).

Question 9

National Employment
Savings Trust (NEST)

Answer 9

A pension scheme run by a public organisation, which aims to ensure that
the majority of workers are enrolled in an occupational pension.