38 Questions
What is the topic of section 5.3?
Senior management arrangements, systems and controls (SYSC)
What is the topic of section 7.2?
The Retail Distribution Review (RDR)
What is the topic of section 6.2?
FCA Recognised Industry Codes
What is the topic of section 5.1?
The effect of the principles for businesses
What is the topic of section 7.1?
Training and Competence (TC)
What is the topic of section 6.1?
Senior Managers’ and Certification Regime (SMCR)
What is the topic of section 5.2?
The principles for businesses
What is the main purpose of financial markets?
To raise and trade capital
What happens in the financial markets?
Lenders and borrowers are matched up
How do individuals lend in a conscious manner?
By depositing cash in a bank account
What is the role of fund managers in unconscious saving?
To create a portfolio of financial assets
What is the characteristic of complex transactions in financial markets?
They require sophisticated deal-making procedures
What is the primary function of the London Stock Exchange and ICE Futures?
To enable the trading of capital
What is the outcome of the matching process in financial markets?
Lenders and borrowers are matched up
What can ESMA do if it identifies a concern?
Launch an investigation and address a relevant national competent authority within two months
What is the main objective of the European Systemic Risk Board (ESRB)?
To monitor the entire financial sector for potential problems
What are the three specific objectives of the Financial Services Action Plan (FSAP)?
To create a single EU wholesale market, to achieve open and secure retail markets, and to create state of the art prudential rules
What is the key difference between EU regulations and EU directives?
EU regulations are binding on all Member States, while EU directives are addressed to national authorities
What is the main purpose of the Markets in Financial Instruments Directive (MiFID)?
To harmonize financial regulations across the EU
Who is required to impose harmonized rules on their member state firms according to MiFID?
Financial regulators
What is the result of EU regulations being passed?
They have binding legal force throughout every Member State
What was the initial implementation date of the directive?
1 November 2007
When did significant revisions to the directive take place?
January 2018
What act created the framework for regulation in the UK financial services industry?
Financial Services and Markets Act 2000
What was the single regulator created by FSMA 2000?
Financial Services Authority (FSA)
What was the criticism of the FSA after the 2008/9 financial crisis?
Taking too much of a micro-prudential view
What was the focus of the FSA's micro-prudential view?
Individual firms
What act amended FSMA 2000?
Financial Services Act 2012
What is the main difference between a micro-prudential and macro-prudential view?
Focus on individual firms versus focus on the overall financial system
Who drafted the Financial Services and Markets Act 2000?
The Treasury
What is the current status of the Financial Services and Markets Act 2000?
It is still law, but has been significantly amended
What is the primary mission of ESMA?
To enhance investor protection and promote stable and orderly financial markets
What are the three main objectives of ESMA?
Investor protection, orderly markets, and financial stability
What is the purpose of ESMA's Level 1 activities?
To give technical advice to the European Commission when developing legislative proposals
What is the primary purpose of ESMA's Level 2 activities?
To draft subordinate acts, such as delegating and implementing acts
What is the main difference between ESMA's delegating acts and implementing acts?
Delegating acts set out details needed to comply with the laws, while implementing acts set out processes required to implement the laws
What is the main purpose of ESMA's Level 3 activities?
To oversee a consistent approach to the implementation and enforcement of EU legislation
What is the main characteristic of ESMA's Level 4 activities?
A more proactive approach to ensure compliance
Test your knowledge of business management principles, including senior management arrangements, systems, and controls. This quiz covers the effects of principles on businesses and guidance on Principle 3.
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