Regulatory Bodies and Their Roles Flashcards

What is the Pension Protection Fund (PPF)?

Answer: A statutory fund that provides compensation to members of eligible defined benefit pension schemes when employers become insolvent

The PPF was established to provide compensation to members of eligible defined benefit pension schemes when the sponsoring employer becomes insolvent and the scheme cannot meet its obligations.

What is the role of the Insolvency Service in financial regulation?

Answer: It deals with company insolvency and bankruptcy, investigates directors of failed companies, and maintains the individual insolvency register

The Insolvency Service administers company insolvency and individual bankruptcy, investigates misconduct by directors of failed companies, and can seek disqualification orders against unfit directors.

What is the role of the Advertising Standards Authority (ASA) in financial services?

Answer: It co-regulates advertising alongside the FCA, handling non-broadcast financial advertising complaints that are not about product-specific claims

The ASA works alongside the FCA in regulating financial advertising. While the FCA handles financial promotions containing specific product claims, the ASA deals with broader advertising standards issues including misleading non-financial claims in financial ads.

What is the role of the Charity Commission as it relates to financial regulation?

Answer: It regulates charities in England and Wales, including their investment activities and financial management

The Charity Commission regulates charities in England and Wales, which includes oversight of charities' investment activities, financial management, and governance. Charities with investments are subject to both charity law and financial regulation.

How are trade bodies different from regulators in the financial services sector?

Answer: Trade bodies represent and advocate for their members' interests, while regulators enforce rules in the public interest with statutory powers

Trade bodies (such as UK Finance, the ABI, and the BSA) represent and advocate for their members. They may produce voluntary codes but lack statutory enforcement powers. Regulators like the FCA have legal powers to make and enforce binding rules.

What is the Economic Crime and Corporate Transparency Act 2023?

Answer: Legislation that strengthened powers to tackle economic crime including reform of Companies House, new corporate offence of failing to prevent fraud, and enhanced SARs

This Act introduced major reforms including giving Companies House greater powers to verify and challenge information, a new corporate offence of failure to prevent fraud, enhanced SARs information sharing, and crypto-asset seizure powers.