topic 7 The impact of recent changes Flashcards

1
Q

What did the bank of england act 1998 do

A

Gave the bank of england the right to set the bank rate

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2
Q

What does the government want the cpi to be around

A

2%

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3
Q

What eu directive is still in the uk

A

The compensation scheme being 100,000 euros (£85,000) FSCS

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4
Q

What 3 regulatory body’s were made by the eu in 2011

A

The european banking authority - PRA
The european security’s and markets authority
The european insurance and occupational pensions authority

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5
Q

Other eu regulations adopted by the uk (NOT FSCS)

A

EU Gender DIrective - Prohibits insurance being different prices for men and females

Transparency directive - discloser’s of businesses finances each yearly in statements

CDR IV - means bankers cannot have a bonus more than 100% of their salary

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6
Q

What did the banking conduct of business sourcebook 2009 do

A

Requires banks to be clear and not to mislead consumers

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7
Q

What did the financial services and market act 2000 do

A

Created the FOS

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8
Q

What did the banking act of 2009 do

A

Allow the bank of england to shut down a bank before it becomes bankrupt

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9
Q

What did the 2010 financial services act do

A

Made financial stability one of the FSA’s regulatory objectives

Let the treasury made financial laws

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10
Q

What did the 2012 financial services act do

A

Introduced the fca and pra

established the fpc

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11
Q

What did the 2013 financial services act do

A

Introduced a ring fence so banks didn’t risk consumers money

Gave the PRA the abilities to stop the banks from using consumers money to invest in stocks n shares

Provided penalty’s for poor practices

Introduced a cap on payday loans

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12
Q

What must providers do if they give someone a packaged account

A

Check the consumer would be able to claim the insurance the account includes

Provide an annual statement to show how to claim the benefits

Ensures that the consumer knows if the policy’s are useful or not to them

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13
Q

What banks are the big 4

A

Barclays,lloyd,hsbc and natwest

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14
Q

Since when has the first £1000 of interest been tax free

A

2016 6th april

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15
Q

What percentage of the uk have internet

A

96%

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16
Q

What % of adults have checked banking online

A

76%

17
Q

Positives of online finance

A

“Open” at any time
Have calculators on them
Faster payments
New sources of borrowing
Product comparison sites