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In addition to the FCA and the PRA, there are other bodies: 5 | C FTHB Lernen beginnen
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Competition and Markets Authority CMA | FPC | Treasury | HMRC | BoE.
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Competition and Markets Authority objective is __ 2 Lernen beginnen
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Consumers gets a good deal when buying goods and services. | Businesses operate within the law.
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5 Competition and Markets Authority Lernen beginnen
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Mergers. | Market studies. | Cartel offenses.| Consumer protection.| Investigating prohibitions against anti-competitive agreements. MMCCI (rok 2201)
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Outcomes that the CMA is looking 3 Competition and Markets Authority Lernen beginnen
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Fair deals for people.| Economy grow. | Competitive market. FEC
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HMRC produces guidance notes on ...? Lernen beginnen
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on HM Treasury’s rules for ISAs.
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Since 2009, BoE has had a statutory objective to ...? Lernen beginnen
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‘protecting the stability of the UK financial system' From April 2013, the BoE took on further responsibilities that saw the creation of an independent Financial Policy Committee (FPC) at the BoE.
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Financial Policy Committee is charged with identifying ___? Lernen beginnen
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SYSTEMIC RISKS of the UK financial system The FPC meets at least four times a year.
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FPC is responsible for the BoE’s biannual ____? Financial Policy Committee Lernen beginnen
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Financial Stability Report (FSR). which covers the stability and resilience of the financial sector.
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BoE Lernen beginnen
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Monetary Stability, | Financial Stability.
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Monetary Stability two main criteria: 2 Lernen beginnen
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Stable prices, | confidence in the currency. Bank’s Monetary Policy Committee meets eight times a year (roughly every 6 weeks).
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Financial Stability. BoE’s surveillance functions detect __? Lernen beginnen
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threats to the financial system. In exceptional circumstances, the BoE may act as the lender of last resort by extending credit to banks.
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BoE works together with other institutions, including: 3 Lernen beginnen
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Treasury, | Other central banks. | Goverment. TOG
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HM Treasury is responsible for...? Lernen beginnen
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... for financial services regulation in the UK. The government department responsible for implementing the government’s financial and economic policies.
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The Pensions Regulator (TPR) regulates Lernen beginnen
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... work-based pension schemes.
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Who appoints the CEO and chair of FCA? sometimes referred to as the Treasury, Lernen beginnen
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The Chancellor of the Exchequer head of HM Treasury often abbreviated to chancellor
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Which body protects the UK’s workplace pensions? Lernen beginnen
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The Pensions Regulator (TPR)
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Occupational pension scheme can be contributory or __? Lernen beginnen
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where part of an employee’s salary is added to the employer’s contribution, | where employers solely make the payments.
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Pension scheme can be set up as...? 2 Both contributory and non-contributory Lernen beginnen
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Defined contribution (DC) schemes. | Defined benefit (DB) scheme. where a set amount of payment is made to the scheme, | where scheme members are guaranteed to receive x% amount of the final salary.
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The main aim of the Pensions Act 2008 was to introduce... Lernen beginnen
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‘automatic enrolment’ for workplace pensions, TPR can take enforcement actions if an employer does not comply with its legal responsibilities.
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Following Brexit, the UK government introduced legislation that converted existing direct EU legislation into __? Lernen beginnen
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The European Union (Withdrawal) Act 2018 gave the government powers to amend current legislation.
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MIFID was EU directive which... 2cz Markets in Financial Instruments DIRECTIVE Lernen beginnen
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... which allows firms authorised in one member state to offer financial services to customers in another member state. It was replaced by MiFID II in 2018.
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Markets in Financial Instruments Regulation Lernen beginnen
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A Regulation which came into effect alongside MiFID II in 2018, following a review of MiFID. As a regulation, EU member states are not required to ‘transpose’ MiFIR into national law.
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EU Guidelines published by ESMA and the EBA still... Lernen beginnen
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... still apply until stated otherwise by FCA / PRA. European Securities and Markets Authority,| European Banking Authority
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ensure UK firms are complying with the same legislation as EU firms.
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Retained EU rules still applicable, as no UK versions exist yet
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Treasury ‘Wholesale Markets Review’ purpose is to determine... Lernen beginnen
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... how much of the existing EU Regulation needed adapting to reflect the UK approach to financial regulation. In 2021 HMT published a review of the wholesale markets in the UK. UK government believed that the EU approach to regulation meant that some regulation was not calibrated for the uniqueness of the UK markets.
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‘Wholesale Markets Review’ objectives: 3 Lernen beginnen
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Economic growth supporting. | Regulatory standards upholding. | Competitiveness promoting ERC
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Financial Services and Markets Act 2023 essence is to...? HM Treasury Lernen beginnen
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... providing the powers and legislative structure for HMT, PRA and FCA.
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Financial Services and Markets Act 2023 will start the process of ...? Lernen beginnen
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... of revoking retained EU law relating to financial services and enable to replace it with legislation designed specifically for UK markets.
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... the process whereby criminals attempt to conceal the true origins of the proceeds of their criminal activities and to give them the appearance of legitimacy.
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Why Does Overseas Legislation Impact UK Financial Services? Lernen beginnen
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Because many firms operate globally, offering products and services which have similar but different local rules
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Intergovernmental bodies do not make rules that directly apply in the UK, but... Intergovernmental = supernational Lernen beginnen
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... their recommendations shape the structure and future of UK financial services regulation. The Financial Action Task Force (FATF). | Bank for International Settlements (BIS)
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Financial Action Task Force (FATF) areas of activity? 2 Lernen beginnen
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global anti-money laundering | and terrorist financing
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What does stand for FATF? Lernen beginnen
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Financial Action Task Force developed 40 Recommendations; 200 countries have committed to implementing them
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Bank for International Settlements 63 central banks and monetary authorities are currently members and have rights of voting
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Bank for International Settlements is __ Lernen beginnen
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an international financial institution that serves as a bank for central banks and fostering international monetary cooperation. The BIS is owned and governed by central banks.
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BIS. How many members does its Board of Directors have” Lernen beginnen
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including 6 ‘ex-officio’ Directors, comprising the Central Bank Governors of Belgium, France, Germany, Italy, UK and USA.
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International Organisation of Securities Commissions
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It is the global body that sets international standards for securities regulation. over 130 jurisdictions to protect investors, | IOSCO Board comprises 34 regulators
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What are IOSCO Principles? Lernen beginnen
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Core documents where IOSCO develops and promotes adherence to internationally recognised standards.
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The Internal Audit function is expected to develop ...? Lernen beginnen
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an independent view of the risks faced by a firm based on their access to all records and data.
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External auditors should: 4 Lernen beginnen
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have relevant industry knowledge, | Competence to respond a material misstatement, | be objective, | exercise professional scepticism.
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a type of legal arrangement that allows a suitable third party (ie, a trustee) to manage the asset on behalf of an beneficiary.
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Who has ultimate responsibility for decision-making in a trust? Lernen beginnen
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Trustees can delegate the management of their investments to 2 Lernen beginnen
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finance |or investment committee.
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How can form a finance or investment committee in a trust? 2 Lernen beginnen
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It may consist solely of trustees, | but an external investment sub-committee may also be established.
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Which body issued the set of 10 principles on compliance for firms? Lernen beginnen
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Bank for International Standards
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Who produced guidelines on certain aspects of the MiFID II Compliance function for firms? Lernen beginnen
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European Securities and Markets Authority after Brexit ESMA will not apply in the UK. | FCA will replace the EU supervisory bodies Guidelines with its own guidance.
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Membership of Industry Bodies can be...? 2 Lernen beginnen
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at the individual level, |or at the firm level. Senior individuals within regulated firms, acting in a personal capacity. | Iindividuals acting on behalf of their firm.
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Members of Industry Bodies will be subject to a ___? Lernen beginnen
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Example of this would be the ‘FX Global Code’ (re: wholesale foreign exchange market)
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In banking and finance in the UK no Professional Pody has statutory regulatory powers, with the exception of...? Lernen beginnen
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accountancy|and actuarial sectors. ie, the Chartered Institute for Securities. The CISI expects members to comply with its ‘code of conduct’.
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Trade Associations undertake advocacy on behalf of their members with 2 Lernen beginnen
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legislators | and regulators ie HM Treasury. | PRA/FCA.
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Two types of trade associations: Lernen beginnen
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product-specific, | generalist. ie, ISLA for securities lending, ICMA for bonds and repos, ISDA for OTC derivatives. || AFME, the Association of Foreign Banks.
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Authorisation Process. What are the deadlines for regulators to concider an application? 2 Lernen beginnen
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6 months normally, | 12 months for incomplete cases.
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Application pack fee. How many pricing categories are? Lernen beginnen
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What is a Business supplement? 1+1 | Authorisation Process. Lernen beginnen
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a form covering the business plan (incuding governance framework)
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Authorisation Process. The application pack requires information on? Lernen beginnen
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Core details. | Controllers*. | Business supplement. | **Significant events disclosure. | Approved persons forms. | Checklist. *– detailed information about the firm’s owners and controllers. | **Did firm has traded before? | ***each person who is to carry out Senior Management Function
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Which regulator is relevant for dual-regulation application? Lernen beginnen
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A firm will make a single application to the PRA as its lead regulator to be authorised.
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Authorisation in this way is provided through the regulators’ powers under which which part of FSMA? Lernen beginnen
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Part 4A of FSMA permission.
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The term 'authorised person' includes those who have been authorised by FCA/PRA* and also other persons such as...? 2 *The Permissions Regime - Part 4A of FSMA Lernen beginnen
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overseas firms, | the Society of Lloyd’s.
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