Unit 5 - The legal and regulatory environment

Question 1

What is the minimum number of people required to set up a UK private limited company?

Answer 1

1

Question 2

Which regulatory body is known as the Lender of Last Resort?

Answer 2

Bank of England

Question 3

Prudential regulation is mainly about…

Answer 3

Consumer protection

Question 4

What is not a key function of a central bank?

Answer 4

Assisting banks with delivering on their strategy and ensuring they always make profits

Question 5

Financial services act 2012 (the act) came into force on 1st April 2013. Which bodies were formed as a result of this act?

Answer 5

Financial Policy Comittee (FPC), Prudential Regulatory Authority (PRA) and Financial Conduct Authority (FCA)

Question 6

With regards to the regulatory framework in the uk, The Chancellor of the Exchequer and the Treasury is responsible for?

Answer 6

The regulatory frameworks and all decisions involving
public funds

Question 7

What is not an objective of the PRA

Answer 7

To ensure there is a zero firm failure across the UK financial services sector

Question 8

What is not an operational objective of the fca?

Answer 8

Promote the safety and soundness of the firms it regulates

Question 9

What does the money advice service do?

Answer 9

Provides free impartial financial information and advice

Question 10

From a global perspective, the FCA devotes time & resources to international engagement. It is a member of the international financial consumer protection organisation & contributes to the work of the..

Answer 10

Financial stability board, financial action task force, organisation for economic cooperation & development

Question 11

Fscs provides a service for which groups?

Answer 11

Consumers, customers, industry, regulators

Question 12

Financial ombudsman has to give answers to complaints within how many days?

Answer 12

90

Question 13

If a customer holds money with a uk bank, the fscs will compensate up to…

Answer 13

£85 k per person per bank, £170k for joint accounts

Question 14

Financial safety net consists of what elements?

Answer 14

Regulation and supervision
Lender of last resort
Deposit insurance schemes
Bank insolvency/resolution laws
Cooperation and resolution process

Question 15

How many principles lie at the heart of the GDPR regulation?

Answer 15

7

Question 16

The regulator responsible for requiring firms to put the well being of their customers at the heart of how they run their business, promoting effective competition and ensuring markets operate with integrity is…

Answer 16

Financial conduct authority

Question 17

For a loan regulated by the consumer credit act 2006, the upper limit for the amount of a loan to an individual is..

Answer 17

None there is no limit

Question 18

Data protection act 1998 classifies data relation to a persons religion as..

Answer 18

Sensitive data

Question 19

Main objective of PSD2 (payment services directive) is to..

Answer 19

Increase competition in the provision of banking services

Question 20

The uks central bank is the Bank of England. It’s mission is to:

Answer 20

Promote the good of the people by maintaining monetary and financial stability.