FCA is accountable to
The Treasury
PRA Firms
Deposit takers, Insurers, Significant Investment Firms
Dually registered firms will apply to X for authorisation
PRA
FCA 3 Operational Objectives
Consumer protection, Integrity & Competition
4 Powers of FCA
4A Permission, Prosecute for Financial Crime, Rule Making, Supervision, Enforcement and Sanctions
Role of Upper Tribunal
Independent review of PRA/FCA devisions
Excluded Activities from Regulation
- Media broadcasts
- Providing Information
- Unpaid Trustees
- Employee Share Schemes
- Dealing as Principal & End User offering no Service to Others
Investments Excluded from Regulation
- Property
- Tangible Assets
- Currencies
- Premium Bonds
*National Savings Certificates
In general, code staff, under the remuneration code, will have what percentage of their bonus deferred? For how long a period?
At least 40%, minimum of 3 years
Under MIFID II, Local Authorities are treated as what type of client?
Retail Client, unless investing on behalf of a local government pension scheme, then they can opt up to be considered a professional client
What is the FCA not allowed to take away from a workplace investigation?
Original documents, only copies allowed
Are transfers to trusts taxed?
Yes, chargeable lifetime transfer.
Systematic vs. Non-Systematic Risk
Systematic = affects the overall market, ex. natural disaster, inflation etc.
Discretionary Trust
Trustee right to distribute property to beneficiaries as they see fit
Interest in Possession Trust
Beneficiaries = legal right to all income from property, but not property itself
Bare trust
The trustee can take the income and capital from the trust at any time
AIFMD Purpose
Establish an EU-wide framework for monitoring and supervising the risks posed by alternatives. Enables passporting.
An AIFM need to seek authorisation if
AuM over €100mn if leveraged, €500mn if unleveraged
Pensions act eligible workers
between 22yrs-retirement age & earn at least 10k per year
Who approves occupational pension schemes?
HMRC Pensions Scheme’s Office
How often does the statement of investment principles for a pension scheme be revised?
Every 3 years & whenever there has been a significant change in investment policy
Objectives of Pension Regulator
- Protect benefits of members of workbased pensions
- Reduce risk of situ. requiring compensation from Pension protection fund
- Promote good administration and understanding of the schemes it regulates
- Maximise employer compliance with its duties
Preference Shares
Fixed dividend and no voting rights
What are collective investment schemes?
Large pooled funds including unit trusts and investment companies with variable capital (open ended investment companies). Investors receive a unit that represents a small % of the AuM
