CII R01 EXAM (updated 2025) Questions &
Answers | Latest Already Graded A+ UPDATE
2025|2026
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Terms in this set (35)
- Brought together the regulation of all sectors of the
UK financial services industry under one regulatory
system - the FSA
Introduced FOS and FSCS
set out the rules for all regulated activities when
Financial Services and dealing with:
Markets Act 2000 (FSMA) • deposit taking
• stocks and shares
• gilts and local authority bonds
• debentures
• futures
• unit trusts
• open-ended investment companies (OEICs)
, - In 2013
- Prudential Regulatory Authority (PRA) and Financial
Conduct Authority (FCA) formed
Financial Services
Authority (FSA) - Reforms clarified responsibilities between:
Disbanded 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.
- Committee within the Bank of England allows:
Financial Policy 1. scrutiny towards emerging risks to the financial
Committee (FPC) system as a whole
2. Powers to take action where it identifies threats.
- Works with the Bank of England but is independent.
- Responsibility for the prudential supervision and
authorisation of important financial institutions such as
banks and firms
Prudential Regulation
- Ensure that individual firms can fail without bringing
Authority (PRA)
down the entire financial system.
- 'judgment based' approach to supervision,
Prudential Regulation Committee (PRC) makes the
PRA decisions.
1. HM Treasury & Parliament
2. The Bank of England: comprising the (PRA), the
UK regulatory structure
F(FPC), and the (PRC)
3. Financial Conduct Authority (FCA)
1998 & 2006
Memorandum of
Understanding ...is a document that outlines of an agreement that two
or more parties have reached.
Answers | Latest Already Graded A+ UPDATE
2025|2026
Save
Terms in this set (35)
- Brought together the regulation of all sectors of the
UK financial services industry under one regulatory
system - the FSA
Introduced FOS and FSCS
set out the rules for all regulated activities when
Financial Services and dealing with:
Markets Act 2000 (FSMA) • deposit taking
• stocks and shares
• gilts and local authority bonds
• debentures
• futures
• unit trusts
• open-ended investment companies (OEICs)
, - In 2013
- Prudential Regulatory Authority (PRA) and Financial
Conduct Authority (FCA) formed
Financial Services
Authority (FSA) - Reforms clarified responsibilities between:
Disbanded 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.
- Committee within the Bank of England allows:
Financial Policy 1. scrutiny towards emerging risks to the financial
Committee (FPC) system as a whole
2. Powers to take action where it identifies threats.
- Works with the Bank of England but is independent.
- Responsibility for the prudential supervision and
authorisation of important financial institutions such as
banks and firms
Prudential Regulation
- Ensure that individual firms can fail without bringing
Authority (PRA)
down the entire financial system.
- 'judgment based' approach to supervision,
Prudential Regulation Committee (PRC) makes the
PRA decisions.
1. HM Treasury & Parliament
2. The Bank of England: comprising the (PRA), the
UK regulatory structure
F(FPC), and the (PRC)
3. Financial Conduct Authority (FCA)
1998 & 2006
Memorandum of
Understanding ...is a document that outlines of an agreement that two
or more parties have reached.
