UK Regulatory Environment Post-Brexit

<p>Safety and soundness of banks and deposit-taking firms (D)</p> Signup and view all the answers

<p>Acts as the lender of last resort (C)</p> Signup and view all the answers

<p>Equities market (D)</p> Signup and view all the answers

<p>The new name for the Future Regulatory Framework post-Royal Assent (A)</p> Signup and view all the answers

<p>Financial Conduct Authority (D)</p> Signup and view all the answers

<p>The trading venue perimeter (C)</p> Signup and view all the answers

<p>It provided powers and structure for financial regulation in the UK. (B)</p> Signup and view all the answers

<p>2023 (D)</p> Signup and view all the answers

<p>Overhaul the UK financial regulatory landscape (A)</p> Signup and view all the answers

<p>HM Treasury (B)</p> Signup and view all the answers

<p>Bond and derivatives markets (D)</p> Signup and view all the answers

<p>Proceed with aims of the Wholesale Markets Review (C)</p> Signup and view all the answers

<p>Automatic passporting rights for UK and EU firms no longer exists. (B)</p> Signup and view all the answers

<p>EU firms must establish a branch or subsidiary to operate in the UK. (D)</p> Signup and view all the answers

<p>EU (Withdrawal Agreement) Act 2020 (A)</p> Signup and view all the answers

<p>Equivalent under existing EU legislation (C)</p> Signup and view all the answers

<p>Market access between the UK and EU is now restricted. (B)</p> Signup and view all the answers

<p>Set up a physical presence in the EU. (D)</p> Signup and view all the answers

<p>31 January 2020 (C)</p> Signup and view all the answers

<p>It is inflexible and difficult to amend or repeal. (D)</p> Signup and view all the answers

<p>Self-Regulatory Organizations (SROs) (B)</p> Signup and view all the answers

<p>To attack anti-competitive practices and abuses of dominant positions. (A)</p> Signup and view all the answers

<p>The Financial Services and Markets Act 2000 (B)</p> Signup and view all the answers

<p>Financial Services Authority (FSA) (A)</p> Signup and view all the answers

<p>Federal Reserve Board (FRB) (B)</p> Signup and view all the answers

<p>High costs to update compliance systems. (A)</p> Signup and view all the answers

<p>Financial Services Authority (FSA) (B)</p> Signup and view all the answers

<p>They may offer greater flexibility and faster responses to issues. (A)</p> Signup and view all the answers

<p>To regulate conduct in both retail and wholesale markets (C)</p> Signup and view all the answers

<p>Enhancing consumer protection in local markets (C)</p> Signup and view all the answers

<p>Considering non-regulatory solutions before formal regulations (B)</p> Signup and view all the answers

<p>Unilateral decision-making without consultation (B)</p> Signup and view all the answers

<p>Evaluating one-off regulatory interventions as options (B)</p> Signup and view all the answers

<p>To make informed decisions about market impacts (B)</p> Signup and view all the answers

<p>Utilizing technology as the sole regulatory solution (A)</p> Signup and view all the answers

<p>Regulatory responses should be justified by evidence of failure (B)</p> Signup and view all the answers

<p>It should not be the only approach used (A)</p> Signup and view all the answers

<p>Conducting independent reviews of investment research (A)</p> Signup and view all the answers

The ability of a financial services firm to automatically operate in another country's market without additional licensing or authorisation.

EU legislation that allows for continued access to EU markets by non-EU firms.

An EU regulation that governs financial services firms in the EU, including passporting and the authorisation process.

The UK's departure from the European Union.

The UK legislation that implemented the withdrawal agreement with the EU.

The UK legislation that detailed the process of withdrawing from the EU.

The UK's financial services regulatory landscape has changed significantly since Brexit.

EU firms must now establish a physical presence in the UK to offer their products or services.

The Markets in Financial Instruments Directive II (MiFID II) is a framework of regulations designed by the EU for financial markets.

The UK government believes that the MiFID II framework, although designed by UK, needs adjustments for the unique characteristics of the UK financial markets.

The UK's approach to regulating secondary markets involves both primary and secondary legislation, which is the responsibility of the government, and rules and guidance set by the Financial Conduct Authority (FCA).

The FCA, the UK's financial regulator, plays a major role in shaping the regulatory framework by issuing rules and guidance.

The FCA's commitment to reviewing and adapting existing regulations, evidenced by consultations in 2022 and 2023, demonstrates its proactive approach to ensuring a well-functioning market.

The Wholesale Markets Review (WMR) is an ongoing initiative of the UK government to modernize its financial regulatory framework.

The Financial Services and Markets Bill, passed by the UK government in July 2022, provides the legal framework for implementing changes stemming from the Wholesale Markets Review.

The term 'Smarter Regulatory Framework' is the new name for the 'Future Regulatory Framework' used in the Financial Services and Markets Bill. It emphasizes the government's focus on making regulations more effective and efficient.

The UK government aims to create a more effective financial regulatory landscape by adopting a 'Smarter Regulatory Framework' approach that uses a combination of legislation, rules, and guidance.

The 'Smarter Regulatory Framework' is the government's plan to modernize and refine the UK's financial regulatory landscape, striving for a more efficient and effective system.

The Financial Conduct Authority (FCA) is the UK's independent financial watchdog. It regulates financial firms and markets to protect consumers and promote fair competition.

The FCA oversees the conduct of both retail and wholesale financial markets, including exchanges and over-the-counter (OTC) trading.

The FCA provides prudential regulation for firms not overseen by the PRA (Prudential Regulation Authority).

Overhauling the regulatory landscape after Brexit to ensure UK laws are suitable for its unique market.

The FCA actively participates in developing industry standards and best practices, both domestically and internationally.

The FCA prioritizes introducing new regulations only when demonstrated market failures exist and the cost of regulation is less than the cost of the failure.

The FCA integrates economic assessments into the policy-making process to understand the likely effects of new regulations.

The FCA engages in consultations at all stages of introducing new regulations, seeking feedback from stakeholders.

The FCA explores non-regulatory solutions such as competition policies or codes of conduct instead of resorting to new regulations.

The FCA uses one-off interventions, such as thematic reviews or catalytic work, to address specific issues without creating new formal regulations.

The Bank of England (BoE) acts as the UK's central bank, responsible for maintaining price stability and supporting the government's economic policies. It aims to achieve this through monetary policy by adjusting the base interest rate, which is decided by the Monetary Policy Committee (MPC).

The BoE maintains financial stability by protecting the financial system from threats. It uses surveillance and market intelligence to identify potential issues and takes action through financial and other operations. In exceptional circumstances, the BoE can act as the lender of last resort.

The Financial Policy Committee (FPC) and Prudential Regulation Authority (PRA) are important parts of the BoE responsible for financial stability. They are involved in regulating banks, insurers, and other financial institutions to promote safety and soundness.

The BoE also oversees financial market infrastructures (FMIs) that facilitate the clearing, settlement, and recording of financial transactions. These FMIs ensure the smooth functioning of financial markets.

The BoE's primary objective is to maintain stable prices, which is reflected in achieving the government's inflation target. Currently, this target is 2% based on the 12-month increase in the Consumer Price Index (CPI).

The Financial Services and Markets Act (FSMA) 2000 replaced existing self-regulatory organizations (SROs) with a single statutory regulator, the Financial Services Authority (FSA).

The FSA was responsible for both prudential regulation (ensuring financial stability) and the conduct of business regulation (ensuring fair treatment of customers) of firms within the financial services sector.

The FSA, Bank of England (BoE), and HM Treasury worked together under a tripartite system to oversee the financial system.

Non-legislative actions, such as using the FCA's powers to address anti-competitive practices or developing codes of conduct, are often considered before resorting to legislation.

The Financial Conduct Authority (FCA) has the power to act against anti-competitive practices, abuses of dominant positions, or barriers to entry in the financial market.

Codes of conduct are a non-legislative tool that can be used to promote ethical behavior and good practices in specific sectors of the financial market.

The Financial Services Act (FSA) 2012 and 2021 were enacted to modernize financial regulation, making it more effective and adaptable.

The Bank of England (BoE) is responsible for maintaining financial stability, including setting and implementing monetary policy.

The Financial Policy Committee (FPC) is responsible for identifying, monitoring, and taking action to address systemic risks that could threaten the financial system.

The Prudential Regulation Authority (PRA) is responsible for prudential regulation of banks, building societies, insurance companies, and investment firms.