Unit 4 Topic 1 Flashcards
Who are the competition and markets authority?
The body responsible for strengthening business competition and preventing and reducing anti-competitive activities.
Who are ‘counterparties’?
People and organisations who lend money to and borrow from financial intermediaries.
What type of financial institution is this referring to?
A mutual organisation that provides a range of financial products to members. Members must all share a common bond.
Credit Union
What process is this referring to? The process of selling off parts of a company to make it smaller.
Divestment
Can you name an example of divestment? (should be in textbook)
The Lloyds sell-off that created new TSB branches
Who are the Financial Conduct Authority?
The organisation that regulates financial firms providing services to consumers, and maintains the integrity of the UK’s financial markets
What is this referring to?
A financial institution that facilitates the process of lending and
borrowing, by taking deposits from those with a surplus and lending
those funds out to those who need to borrow.
Financial intermediary
What is financial intermediation?
The process of taking in deposits from those with a surplus and lending
those funds out to those who need to borrow
What is the Financial Ombudsmen Service?
An independent body set up by Parliament that settles customer
complaints about providers at no charge to consumers.
What part of the Bank of England is this referring to?
Monitors and responds to risk posed to
the entire financial services market. Its focus on the whole market makes
it a macro-prudential authority.
Financial Policy Committee
What is the Financial Services Compensation Scheme?
A compensation scheme that pays compensation to account holders of up
to a certain amount per provider if the provider goes into default
What type of financial institution is this referring to?
A mutual organisation that offers its members a wide range of financial
products, which can include savings, investments, insurance, pensions
and annuities.
Friendly society
Which government department is this referring to?
The government department responsible for
development and implementation of financial and economic policy
What is an Independent financial adviser?
A professional who makes financial recommendations to clients, based on
products offered by a wide range of providers
What type of bank is this referring to?
Banks that raise funds on the financial markets, rather than accepting
deposits as a retail bank does. They use these funds to provide special
services to large corporations and to governments. Also known as
wholesale banks.
Investment banks
What is this referring to?
An insurance marketplace where members (corporations and individuals)
employ underwriters to come together and accept insurance risk, dividing
it out between the members.
Lloyd’s insurance market
What are Long-term capital markets?
Financial markets where long-term debt and shares in the bank are bought and sold. This provides a source of funding for banks.
What is monetary policy?
The manipulation of interest rates to maintain low inflation
What is meant by a ‘mutual’ organisation?
An organisation owned by its customers, who are also its members, rather than by shareholders
Define ‘oligopoly’
A market dominated by a few large firms
What is this referring to?
Online firms that provide instant, very short-term (ie for a few days or
weeks), unsecured cash advances of small amounts to customers who
need cash immediately, and who are in employment and have payroll
records.
Payday loan companies
What are Peer-to-peer lenders?
Online marketplaces that enable people to lend to and borrow from each
other without using a traditional financial institution such as a bank or
building society
What is the key difference between and independent financial adviser and a restricted financial adviser?
Independent financial advisers can give advice about a range of financial products and services across various markets.
Restricted financial advisers can only recommend certain types of product from one or a limited number of providers.
What are retail banks?
Deal directly with consumers
