CISI Regulatory exam questions with correct answers

FSAP - Answer Financial services action plan - creates and implements directives on an EU level. Aims to harmonise financial services rules across EU. Includes EU directives (to be implemented into national law) and EU regulations (binding on member states) FSAP directives - Answer Market Abuse Directive Prospectus Directive MiFID Money Laundering Directive What must EU members do with FSAP directives - Answer Directives must be implemented and transposed into national law. Regulation is immediately binding in member states. What is an act and order - Answer Law EU Regulatory bodies (ESAs) - Answer European level regulations that oversee national regulators ESMA (European securities and markets agency) - financial markets EBA (European banking agency) - banks EIOPA - insurance and pensions [ESRB works with ESAs to promote financial stability and avoid a financial market collapse at the European level and ESAs implement capital standards for banks]