Regulatory Bodies and Their Roles Flashcards

What is the role of professional bodies in financial regulation?

Answer: They set professional standards, provide qualifications, enforce codes of conduct, and some act as AML supervisors

Professional bodies like the CII and CISI play important roles in setting professional and educational standards, providing qualifications, enforcing codes of conduct, and some are designated AML supervisors under the MLR 2017.

What is the FCA's relationship with international regulatory bodies?

Answer: The FCA cooperates with international regulators through bodies like IOSCO and bilateral agreements for information sharing and enforcement

The FCA cooperates extensively with international regulators through multilateral bodies (IOSCO, FSB) and bilateral MoUs, enabling information sharing, enforcement cooperation, and consistent regulatory standards.

What is the International Organization of Securities Commissions (IOSCO)?

Answer: The global standard-setter for securities markets regulation, of which the FCA is a member

IOSCO is the international body that brings together securities regulators from around the world. It sets global standards for securities regulation, promotes cross-border cooperation, and assists regulators in maintaining fair and efficient markets.

What is the Financial Stability Board (FSB)?

Answer: An international body that monitors and makes recommendations about the global financial system

The FSB is an international body established after the 2008 financial crisis to monitor and make recommendations about the global financial system. It coordinates the work of national financial authorities and international standard-setting bodies.

What role does the Bank of England play beyond the PRA?

Answer: It sets monetary policy, provides lender of last resort facilities, oversees payment systems, and maintains financial stability through the FPC

The Bank of England has multiple roles beyond the PRA: it sets monetary policy through the Monetary Policy Committee, acts as lender of last resort, oversees systemically important payment systems, and maintains financial stability through the FPC.

What is the Office for Professional Body Anti-Money Laundering Supervision (OPBAS)?

Answer: A body within the FCA that oversees professional body AML supervisors to ensure consistent supervision standards

OPBAS was established within the FCA to ensure that professional body supervisors (such as those for accountants and lawyers) provide consistently high-quality AML supervision across their member firms.