PSC Financial and Business Skills Exam Guide -
Distinction Level
FSMA - ANSWER---Financial Services and Markets Act 2000
Bodies created by FSMA - ANSWER---Financial Policy
Committee, Prudential Regulation Authority, Financial Conduct
authority
Financial Policy Committee - ANSWER---Identifies, monitors and
takes action to remove or reduce risks to the system. It doesn't
authorise or regulate directly, but it gives guidance and directions
to regulators (PRA, FCA), who must comply with directions (but
not recommendations, although they must explain why)
Prudential Regulation Authority (PRA) - ANSWER---Responsible
for the prudential regulation of all deposit-takers, including banks,
building societies, credit unions, insurers and a small number of
major investment firms
Financial Conduct authority (FCA) - ANSWER---Responsible for
business regulation of all authorised firms, as well as prudential
regulation for all non-PRA-authorised firms (all firms acting in the
financial markets except those regulated by the PRA - this
includes fund managers, stock brokers, pensions advisers, etc),
regulates markets, counters financial crime, and enforces its
rules.
Distinction Level
FSMA - ANSWER---Financial Services and Markets Act 2000
Bodies created by FSMA - ANSWER---Financial Policy
Committee, Prudential Regulation Authority, Financial Conduct
authority
Financial Policy Committee - ANSWER---Identifies, monitors and
takes action to remove or reduce risks to the system. It doesn't
authorise or regulate directly, but it gives guidance and directions
to regulators (PRA, FCA), who must comply with directions (but
not recommendations, although they must explain why)
Prudential Regulation Authority (PRA) - ANSWER---Responsible
for the prudential regulation of all deposit-takers, including banks,
building societies, credit unions, insurers and a small number of
major investment firms
Financial Conduct authority (FCA) - ANSWER---Responsible for
business regulation of all authorised firms, as well as prudential
regulation for all non-PRA-authorised firms (all firms acting in the
financial markets except those regulated by the PRA - this
includes fund managers, stock brokers, pensions advisers, etc),
regulates markets, counters financial crime, and enforces its
rules.
