A2: Financial Services Act 2012

Nota:

• - independent regulator - responsible for conduct of business and market issues for all firms and prudential regulation of small firms - power to ban products where necessary

1. Financial Ombudsman Service
2. Money Advice Service
3. Financial Services Compensation Scheme

Nota:

• - UK's central bank - promote & maintain stable & efficient monetary & financial framework - responsible for settling of payments, functioning of UK market, & providing routine & emergency liquidity to banking system - Core Purpose 1 is monetary stability   - stable prices (inflation target)   - confidence in the currency - Core Purpose 2 is financial stability   - detecting & reducing threats to financial system

1. Financial Policy Committee

   Nota:

   • - within the Bank of England - responsible for watching emerging risks to the financial system as a whole - strategic direction for the entire regulatory regime - responsible for Financial Stability Report
2. Prudential Regulatory Authority

   Nota:

   • - within the Bank of England - responsible for stability and resolvability of systemically important financial institutions - will not seek to prevent firm failures but seeks too ensure firms can fail without bringing down the entire financial system

Nota:

• - put into effect UK Govt's financial & economic policy - aim to raise rate of suainable growth & create economic and employment opportunities for all - work on financial contingencies

Nota:

• - comprised of senior representatives from Bank of England, HM Treasury, & FCA