The Regulatory Environment: UK Financial
Regulations CISI solved questions
When did the Financial Services and Markets Act (FMSA) come into
effect? Correct Answer.-Nov 30 2001
What did the FMSA establish? Correct Answer.-The FSA to replace self-
regulatory organisations (SROs)
The Financial Ombudsman Service (FOS)
The Financial Services Compensation Scheme (FSCS)
The UK listing regime - UK listing authority (UKLA)
Criminal penalties for market abuse
What act amended the FMSA? Correct Answer.-The Financial Services
Act 2012
What two regulatory bodies did the FSA 2012 introduce? Correct
Answer.-FCA and PRA
What did the FCA and PRA replace? Correct Answer.-Financial Services
Authority (FSA)
Who does the PRA regulate? Correct Answer.-dual-regulated firms
,banks, building societies, credit unions, insurers, major investment firms
Who does the FCA supervise and regulate? Correct Answer.-All non-dual
regulated financial institutions that are not regulated by the PRA e.g.
intermediaries, investment exchanges
Who is an authorised person? Who is included? Correct Answer.-A person
authorised to perform regulated activities
PRA/FCA authorised persons
The Society of Lloyds
Overseas firms qualifying with special provisions under part 4A of
FSMA (e.g. EEA, treaty firms, UCITS)#
Investment companies with variable capital (ICVCs) under OEIC
regulations 2001
What is Part 4A permission? Correct Answer.-Permission under Part 4A
of the Financial Services and Markets Act 2000 to carry out specified
regulated activities.
What body does the PRA belong to? Correct Answer.-The Bank of
England
, What is the role of HMT? Correct Answer.-Developing and executing
British Government's public finance and economic policy
and overall responsibility of the financial services sector in the UK.
How does the HMT provide oversight for the FCA? Correct Answer.-Can
appoint or dismiss FCA board and chair
Commission reviews into FCA operations
FCA must submit a report to HMT at least once annually, which is laid
before parliament.
What is the role of the BoE? Correct Answer.-Monetary stability - stable
prices by meeting the government inflation target. Target met by
adjusting base interest rate agreed by the MPC (monetary committee
policy) monthly.
Financial stability- Detecting and reducing threats to stability of the
financial system - area of the PRA
To whom are the FCA accountable? Correct Answer.-The government via
HMT
What is the FOS? What is its role? Correct Answer.-Financial
Ombudsman Service (part 16 FSMA)
Regulations CISI solved questions
When did the Financial Services and Markets Act (FMSA) come into
effect? Correct Answer.-Nov 30 2001
What did the FMSA establish? Correct Answer.-The FSA to replace self-
regulatory organisations (SROs)
The Financial Ombudsman Service (FOS)
The Financial Services Compensation Scheme (FSCS)
The UK listing regime - UK listing authority (UKLA)
Criminal penalties for market abuse
What act amended the FMSA? Correct Answer.-The Financial Services
Act 2012
What two regulatory bodies did the FSA 2012 introduce? Correct
Answer.-FCA and PRA
What did the FCA and PRA replace? Correct Answer.-Financial Services
Authority (FSA)
Who does the PRA regulate? Correct Answer.-dual-regulated firms
,banks, building societies, credit unions, insurers, major investment firms
Who does the FCA supervise and regulate? Correct Answer.-All non-dual
regulated financial institutions that are not regulated by the PRA e.g.
intermediaries, investment exchanges
Who is an authorised person? Who is included? Correct Answer.-A person
authorised to perform regulated activities
PRA/FCA authorised persons
The Society of Lloyds
Overseas firms qualifying with special provisions under part 4A of
FSMA (e.g. EEA, treaty firms, UCITS)#
Investment companies with variable capital (ICVCs) under OEIC
regulations 2001
What is Part 4A permission? Correct Answer.-Permission under Part 4A
of the Financial Services and Markets Act 2000 to carry out specified
regulated activities.
What body does the PRA belong to? Correct Answer.-The Bank of
England
, What is the role of HMT? Correct Answer.-Developing and executing
British Government's public finance and economic policy
and overall responsibility of the financial services sector in the UK.
How does the HMT provide oversight for the FCA? Correct Answer.-Can
appoint or dismiss FCA board and chair
Commission reviews into FCA operations
FCA must submit a report to HMT at least once annually, which is laid
before parliament.
What is the role of the BoE? Correct Answer.-Monetary stability - stable
prices by meeting the government inflation target. Target met by
adjusting base interest rate agreed by the MPC (monetary committee
policy) monthly.
Financial stability- Detecting and reducing threats to stability of the
financial system - area of the PRA
To whom are the FCA accountable? Correct Answer.-The government via
HMT
What is the FOS? What is its role? Correct Answer.-Financial
Ombudsman Service (part 16 FSMA)
