Our strategic objective is to make sure relevant markets function well.
…
How we operate
- protect consumers from bad conduct.
- protect the integrity of the UK financial system.
- promote effective competition in the interests of consumers.
What are the objectives of the FCA?
To support this primary objective, the FCA has three operational objectives: To secure an appropriate degree of protection for consumers. To protect and enhance the integrity of the UK financial system. To promote effective competition in the interests of consumers.
What are the 4 powers of the FCA?
Our enforcement powers
prohibiting individuals from carrying on regulated activities. suspending firms and individuals from undertaking regulated activities. issuing fines against firms and individuals who breach our rules or commit market abuse. issuing fines against firms that breach competition laws.
What are the FCA principles?
A firm must conduct its business with integrity. A firm must conduct its business with due skill, care and diligence. A firm must take reasonable care to organise and control its affairs responsibly and effectively, with adequate risk management systems. A firm must maintain adequate financial resources.
How many key principles does the FCA have?
11 Principles of Business
The FCA have 11 Principles of Business which are general statements of the main regulatory obligations that apply to firms that are regulated by them. The Principles set out in simple terms the high level standards that all firms must meet.
What are the 5 FCA conduct rules?
Tier one – Individual Conduct Rules
- You must act with integrity.
- You must act with due care, skill and diligence.
- You must be open and cooperative with the FCA, the PRA and other regulators.
- You must pay due regard to the interests of customers and treat them fairly.
- You must observe proper standards of market conduct.
What is the main purpose of the FCA client assets rules?
The FCA’s Client Assets Sourcebook (CASS) provides rules for firms to follow whenever the firm holds or controls client money or safe custody assets. CASS helps ensure the safety of client money and assets if a firm fails and leaves the market. CASS has many recordkeeping requirements listed throughout.
What is the correct wording of FCA Conduct Rule 4?
Rule 4: You must pay due regard to the interests of customers and treat them fairly. Rule 5: You must observe proper standards of market conduct. SC1: You must take reasonable steps to ensure that the business of the firm for which you are responsible is controlled effectively.
What activities do the FCA regulate?
Claims management activities
a financial services or financial product claim. a housing disrepair claim. a claim for a specified benefit. a criminal injury claim.
What are the FCA’s six consumer outcomes?
The six outcomes are:
- Outcome 1. Fair Treatment.
- Outcome 2. Products designed to meet needs.
- Outcome 3. Clear information.
- Outcome 4. Suitable advice.
- Outcome 5. Products perform to expectations.
- Outcome 6. No unreasonable post sale barriers.
What is the FCA Principle 7?
7 Communications with clients. A firm must pay due regard to the information needs of its clients, and communicate information to them in a way which is clear, fair and not misleading.
What are the three main accepted objectives of financial services regulation?
Aims of regulation
market confidence – to maintain confidence in the financial system. financial stability – contributing to the protection and enhancement of stability of the financial system. consumer protection – securing the appropriate degree of protection for consumers.
What are the FCA’s six consumer outcomes?
The six outcomes are:
- Outcome 1. Fair Treatment.
- Outcome 2. Products designed to meet needs.
- Outcome 3. Clear information.
- Outcome 4. Suitable advice.
- Outcome 5. Products perform to expectations.
- Outcome 6. No unreasonable post sale barriers.
What activities do the FCA regulate?
Claims management activities
a financial services or financial product claim. a housing disrepair claim. a claim for a specified benefit. a criminal injury claim.
Which of the FCA’s operational objectives refers to market abuse?
Market abuse offences
Criminal insider dealing is an offence under Part V of the Criminal Justice Act 1993, and criminal market manipulation is an offence under sections 89-91 of the Financial Services Act 2012.
What are the FCA 4 key drivers of vulnerability?
What are the 4 Drivers of Vulnerability?
- How do we Identify Vulnerable Customers? The FCA has identified 4 drivers of vulnerability:
- Health. Health is our most important asset.
- Life Events.
- Resilience.
- Capability.
- The Spectrum of Vulnerability.
What are the three main areas of financial crime that the FCA controls?
FCG provides guidance on financial crime systems and controls, both generally and in relation to specific risks such as money laundering, bribery and corruption and fraud. Annexed to FCG is a list of common and useful terms. FCG Annex 1 is provided for reference purposes only and is not a list of ‘defined terms’.