R01 - The UK financial services industry: an overview (section 1)

What is National Savings and Investments (NS&I) best known for

Issuer of premium bonds

What are the 4 protection needs that an individual or company could have

1. Physical assets

2. Earnings

3. Profit Potential

4. Financial Transactions

Name 2 types of financial instruments that rose from capital markets

Shares - Private investors and corporations can buy ownership percentage of a company - benefit from increase in company value and receive proportion of profits called dividends

Fixed-interest stocks (bonds) - allow private investors and corporations to lend a company money subject to predefined terms, in exchange for an interest payement

Name four key components within financial sector

1.Financial infrastructure - payment, settlement, clearing, and trading system

2.Financial markets - both on-exchange and over the counter (OTC)

3.Financial firms - banks, pensions funds, and insurance firms

4.Financial sector authorities - the Bank of England, the Prudential Regulation Authority (PRA), Financial Conduct Authority (FCA) and HM Treasury

What is the UK Government department responsible for the regulation of the financial services market?

the Treasury, under the direct authority of the Chancellor of the Exchequer

What are the key legal instruments governing the regulation and the conduct of business of the financial services industry?

The financial services act 2012
The Bank of England Financial Services Act 2016
European Union (Withdrawal) Act 2018