Chapter 1 Notes

Question 1

The three European supervisory authorities are:

Answer 1

• European Banking Authority
• European Security and Markets Authority
• European Insurance and Occupational Pensions Authority

Question 2

What is the role of the European Central Bank

Answer 2

To co-ordinate and control monetary policy and interest rates in the EU states (using common Euro currency)

Question 3

What is the role of the Financial Action Task Force

Answer 3

To work on anti money laundering globally

Question 4

What are the four key components within the UK financial sector

Answer 4

• Financial Infrastructure - payment, settlement, clearing and trading systems
• Financial Markets - Both on exchange and over the counter
• Financial Firms - Banks, pension firms and Insurance
• Financial Sectors Authority - Bank of England, Prudential Regulation Authority, Financial Conduct Authority and HM Treasury