Topic 7: The Impact of Recent Changes Flashcards
What act allowed Bank of England to control rates
Bank of England act 1998
What were the bank rates in 1980, 1990 and 1998
17%
- 8%
- 5%
What was unemployment rate at the end of 2020
4.9%
Boomerang Generation
young adults who leave home then return as they cant afford housing
1 in 4 young adults with parents in UK (2019)
What is the European System of Financial Provision (ESFS)
system to strengthen and stabilize financial sector through Europe
European systematic risk board
monitors risk to entire system
European Banking Authority (EBA)
ensures effective and prudential regulation and supervision across EU banking system
European Securities and Market authority (ESMA)
ensures integrity, transparency efficiency of markets and enhances investor protection
European Insurance and Occupational Pensions Authority (EIOPA)
supports stability, transparency in markets, protects insurance policyholders and pension schemes
EU Deposit Guarantee Scheme Directive
EU legislation sets minimum level of 100,000 (2010) for compensation if institution fails
EU Gender Directive
equality for men and women accessing products
EU Transparency Directive
requires financial providers to store and provide regulated information
Capital Requirements Directive
Specifies liquid assets providers must hold to ensure they can meet demands of consumers
Remuneration Code
Code from FCA, 50% of bonuses paid in form of shares
Credit act 2006
increased power of office of fair trading
Financial services and markets act 2000
introduced FOS, FSCS and FSA as main regulator
Banking act 2009
BoE can close banks before insolvency
Financial service act 2010
Gave HM powers to set regulation
Financial services act 2012
FPC replaced FSA and PRA and FCA
Financial services act 2013
Gave PRA more powers
new penalities
cap of payday loans
Finance act 2016
Amended tax structure
how did FCA introduce more transparency on packaged accounts
- checking consumers are eligible to claim each policy
- annual statement how to claim each benefit
- check if advisers ensure consumer suited
what are challenger banks
what are top 5
name challenger banks
New banks that challenge top 5
RBS, HSBC, LLoyds, Barclays and Standard Chartered
virgin money, metro bank, starling, Monzo, revolut
what service allows for account transfers
was it successful
16th September 2013 current account switch service
end of 2013, current account transfers increased 17%
Help to buy schemes
government pay 20% borrower pays 5%
Help to buy ISA
every £200, government give £50, cap £3000
stopped 30th November 2019
percentage of UK homes with internet
96% in 2019
Zopa
peer to peer lending
Bitcoin
virtual currency created in 2009 that is not regulated