Regulatory Bodies and Their Roles Flashcards

What is the FCA's 'regulatory perimeter' and who defines it?

Answer: Parliament and HM Treasury define the regulatory perimeter through legislation and secondary legislation, determining which activities the FCA can regulate

The regulatory perimeter — which activities are regulated and by whom — is set by Parliament through primary legislation (FSMA 2000) and by HM Treasury through secondary legislation (Regulated Activities Order). The FCA operates within this defined perimeter.

How does the FCA report to Parliament?

Answer: Through an annual report and accounts, and by appearing before the Treasury Select Committee

The FCA publishes an annual report and accounts which are laid before Parliament, and its senior leaders regularly appear before the Treasury Select Committee to answer questions about the FCA's work and performance.

What is the role of the Upper Tribunal (Tax and Chancery Chamber) in financial regulation?

Answer: It hears references and appeals against certain FCA and PRA regulatory decisions

The Upper Tribunal (Tax and Chancery Chamber) hears references against decision notices issued by the FCA and PRA, as well as certain appeals against regulatory decisions. It provides an independent judicial check on regulatory action.

What is the Regulatory Decisions Committee (RDC) of the FCA?

Answer: An independent body within the FCA that makes certain contested regulatory decisions on behalf of the FCA

The RDC is a committee of the FCA Board that makes certain contested regulatory decisions, such as whether to give warning notices and decision notices. Its members are independent of the FCA executive, ensuring separation of investigation and decision-making.

What is the role of the Single Financial Guidance Body (now MaPS)?

Answer: It brings together money guidance, debt advice, and pension guidance into one body to provide free, impartial help to the public

The Money and Pensions Service (MaPS), which succeeded the Single Financial Guidance Body, brings together three services — money guidance (MoneyHelper), debt advice, and pension guidance (Pension Wise) — to provide free, impartial help to the public.

What is the significance of the Edinburgh Reforms announced in December 2022?

Answer: They set out over 30 reforms to UK financial services regulation post-Brexit, including changes to MiFID, Solvency II, and the regulatory framework

The Edinburgh Reforms were a comprehensive package of over 30 reforms to financial services regulation, aiming to take advantage of post-Brexit regulatory freedom. They included plans to reform the ring-fencing regime, update the prospectus regime, and replace retained EU financial services law.