CII R01
1. Financial Services - Brought together the regulation of all sectors of the UK financial services industry
and Markets Act under one regulatory system - the FSA
2000 (FSMA)
Introduced FOS and FSCS
set out the rules for all regulated activities when dealing with:
• deposit taking
• stocks and shares
• gilts and local authority bonds
• debentures
• futures
• unit trusts
• open-ended investment companies (OEICs)
2. Financial Services - In 2013
Authority (FSA) - Prudential Regulatory Authority (PRA) and Financial Conduct Authority (FCA)
Disbanded formed
- Reforms clarified responsibilities between:
HM Treasury and Bank of England in the event of a financial crisis, Chancellor of the
Exchequer directs the Bank of England where public funds are at risk to financial
stability.
3. Financial Policy - Committee within the Bank of England allows:
Committee (FPC) 1. scrutiny towards emerging risks to the financial system as a whole
2. Powers to take action where it identifies threats.
4. Prudential Regu- - Works with the Bank of England but is independent.
lation Authority - Responsibility for the prudential supervision and
(PRA) authorisation of important financial institutions such as banks and firms
- Ensure that individual firms can fail without bringing
down the entire financial system.
- 'judgment based' approach to supervision,
Prudential Regulation Committee (PRC) makes the PRA decisions.
1/7
, CII R01
5. UK regulatory 1. HM Treasury & Parliament
structure 2. The Bank of England: comprising the (PRA), the
F(FPC), and the (PRC)
3. Financial Conduct Authority (FCA)
6. Memorandum of 1998 & 2006
Understanding
...is a document that outlines of an agreement that two or more parties have
reached.
7. Financial Con- 1. Protection for consumers
duct Authority 2. Enhance integrity of financial system
objectives 3. Promote effective competition
4. Regulates firms not covered by PRA
5. Competition powers, product intervention, power to enforce disclosure and
power to take formal action
8. Principles of 1. Efficiency and economy
good regulation 2. proportionality
3. sustainable growth
4. consumer responsibility
5. senior managers responsibility
6. openness and disclosure
9. Prudential Regu- 1. Responsible regulation big firms and banks
latory Authority 2. Accountable to parliament
objectives 3. Promote competition in markets
4. promote safety of firms
10. Financial Policy Responsible for contributing to the BoE financial stability objective by:
Committee (FPC) 1. identifying and monitoring systemic threats to financial stability
2: taking action to reduce or remove those threat and support
2/7
1. Financial Services - Brought together the regulation of all sectors of the UK financial services industry
and Markets Act under one regulatory system - the FSA
2000 (FSMA)
Introduced FOS and FSCS
set out the rules for all regulated activities when dealing with:
• deposit taking
• stocks and shares
• gilts and local authority bonds
• debentures
• futures
• unit trusts
• open-ended investment companies (OEICs)
2. Financial Services - In 2013
Authority (FSA) - Prudential Regulatory Authority (PRA) and Financial Conduct Authority (FCA)
Disbanded formed
- Reforms clarified responsibilities between:
HM Treasury and Bank of England in the event of a financial crisis, Chancellor of the
Exchequer directs the Bank of England where public funds are at risk to financial
stability.
3. Financial Policy - Committee within the Bank of England allows:
Committee (FPC) 1. scrutiny towards emerging risks to the financial system as a whole
2. Powers to take action where it identifies threats.
4. Prudential Regu- - Works with the Bank of England but is independent.
lation Authority - Responsibility for the prudential supervision and
(PRA) authorisation of important financial institutions such as banks and firms
- Ensure that individual firms can fail without bringing
down the entire financial system.
- 'judgment based' approach to supervision,
Prudential Regulation Committee (PRC) makes the PRA decisions.
1/7
, CII R01
5. UK regulatory 1. HM Treasury & Parliament
structure 2. The Bank of England: comprising the (PRA), the
F(FPC), and the (PRC)
3. Financial Conduct Authority (FCA)
6. Memorandum of 1998 & 2006
Understanding
...is a document that outlines of an agreement that two or more parties have
reached.
7. Financial Con- 1. Protection for consumers
duct Authority 2. Enhance integrity of financial system
objectives 3. Promote effective competition
4. Regulates firms not covered by PRA
5. Competition powers, product intervention, power to enforce disclosure and
power to take formal action
8. Principles of 1. Efficiency and economy
good regulation 2. proportionality
3. sustainable growth
4. consumer responsibility
5. senior managers responsibility
6. openness and disclosure
9. Prudential Regu- 1. Responsible regulation big firms and banks
latory Authority 2. Accountable to parliament
objectives 3. Promote competition in markets
4. promote safety of firms
10. Financial Policy Responsible for contributing to the BoE financial stability objective by:
Committee (FPC) 1. identifying and monitoring systemic threats to financial stability
2: taking action to reduce or remove those threat and support
2/7
