Libf exam revision || with complete solution.
What are 4 the impact of global events and developments on the financial
services consumer. correct answers 1. Possible limited choice of products available to consumers
as
a result of mergers and acquisitions leading to a reduced
number of providers.
2. Possible increased choice of products available to consumers as a result of European Union
regulation.
- Beneficial impact of the recession in keeping Bank rate low and, therefore, the cost of
borrowing.
3. Adverse effect of the recession if a person has become unemployed and so is less able to
purchase certain financial
products.
4. Economic difficulties of companies has led to lower share
prices with such companies.
Describe the 4 impact on a consumer of technological changes
in the financial services industry. correct answers 1. Increased use of online banking,
2. Increased use of the internet in banking, in addition to online
banking.
3. Increased use of apps.
4. Increased use of software, such as in relation to budgeting
and financial planning.
Describe some of the UK legislation, that has had an impact since introduced since 2008, on the
financial services industry. correct answers The Banking Act 2009.
,1. It allows the Bank of England to close down a bank before it
becomes insolvent to protect the rest of the financial
services industry.
2. It gives the Bank of England a new statutory financial stability
objective.
The Financial Services Act 2012.
1. It established an independent Financial Policy Committee
(FPC) that monitors risk to the UK financial system and can
take action to ensure sustainability.
2. It replaced the FSA with two regulatory bodies: the Prudential
Regulation Authority (PRA), to ensure that firms operate their
finances in a sustainable manner; and the Financial Conduct
In which ways has corporate social responsibility impacted on the financial services industry;
and • the financial
services consumer 5 ways 15 marker correct answers - Companies Recommend that individuals
pay into a pension scheme to ensure that they will have an adequate income in retirement.
8. Educate individuals to look for ways to increase their income, such as through career
development and promotion, or by working overtime, or by taking on a second job.
9. Educate individuals to make effective use of appropriate
insurance products, such as the protection of their income
10 Educate individuals to have clear, realistic contingency plans that can deal with unexpected
events.
, 11. Financial providersRecommend that individuals regularly monitor, review and amend their
financial plans.
12 Provision of a face-to-face review with individual customers.
Describe how environmental factors could impact on a person's
financial decision-making. (5 marks) correct answers Financial services providers are being
encouraged to make their products more environmentally friendly.- environmental finance
sustainable investment awards
2. There is evidence that more consumers are becoming interested in environmental issues.
G 20 summit
3. A person might be more inclined to use a particular financial services provider if that
institution has established a good reputation for being environmentally friendly.
4. Providers are being encouraged to make personal loans available to individuals who are using
the money in
environmentally-friendly ways, such as to help pay for the installation of cavity wall insulation,
double /triple glazing, or
solar panels.
5. Personal loans to help buy new cars that are more
environmentally friendly, such as hybrid vehicles, could be
seen as environmentally friendly.
Describe the different ways in which financial services providers
What are 4 the impact of global events and developments on the financial
services consumer. correct answers 1. Possible limited choice of products available to consumers
as
a result of mergers and acquisitions leading to a reduced
number of providers.
2. Possible increased choice of products available to consumers as a result of European Union
regulation.
- Beneficial impact of the recession in keeping Bank rate low and, therefore, the cost of
borrowing.
3. Adverse effect of the recession if a person has become unemployed and so is less able to
purchase certain financial
products.
4. Economic difficulties of companies has led to lower share
prices with such companies.
Describe the 4 impact on a consumer of technological changes
in the financial services industry. correct answers 1. Increased use of online banking,
2. Increased use of the internet in banking, in addition to online
banking.
3. Increased use of apps.
4. Increased use of software, such as in relation to budgeting
and financial planning.
Describe some of the UK legislation, that has had an impact since introduced since 2008, on the
financial services industry. correct answers The Banking Act 2009.
,1. It allows the Bank of England to close down a bank before it
becomes insolvent to protect the rest of the financial
services industry.
2. It gives the Bank of England a new statutory financial stability
objective.
The Financial Services Act 2012.
1. It established an independent Financial Policy Committee
(FPC) that monitors risk to the UK financial system and can
take action to ensure sustainability.
2. It replaced the FSA with two regulatory bodies: the Prudential
Regulation Authority (PRA), to ensure that firms operate their
finances in a sustainable manner; and the Financial Conduct
In which ways has corporate social responsibility impacted on the financial services industry;
and • the financial
services consumer 5 ways 15 marker correct answers - Companies Recommend that individuals
pay into a pension scheme to ensure that they will have an adequate income in retirement.
8. Educate individuals to look for ways to increase their income, such as through career
development and promotion, or by working overtime, or by taking on a second job.
9. Educate individuals to make effective use of appropriate
insurance products, such as the protection of their income
10 Educate individuals to have clear, realistic contingency plans that can deal with unexpected
events.
, 11. Financial providersRecommend that individuals regularly monitor, review and amend their
financial plans.
12 Provision of a face-to-face review with individual customers.
Describe how environmental factors could impact on a person's
financial decision-making. (5 marks) correct answers Financial services providers are being
encouraged to make their products more environmentally friendly.- environmental finance
sustainable investment awards
2. There is evidence that more consumers are becoming interested in environmental issues.
G 20 summit
3. A person might be more inclined to use a particular financial services provider if that
institution has established a good reputation for being environmentally friendly.
4. Providers are being encouraged to make personal loans available to individuals who are using
the money in
environmentally-friendly ways, such as to help pay for the installation of cavity wall insulation,
double /triple glazing, or
solar panels.
5. Personal loans to help buy new cars that are more
environmentally friendly, such as hybrid vehicles, could be
seen as environmentally friendly.
Describe the different ways in which financial services providers
