Financial Services Regulation FBLA

Anti-Money Laundering (AML)

procedures and regulations to detect and prevent money laundering and terrorist financing.

Authorization/Licensing

official permission granted by the FCA or PRA for firms to conduct regulated financial services.

Breach Notification

requirement to report data breaches to regulators or affected individuals.

Breach

violation of laws, regulations, or internal company policies.

Bribery & Corruption

offering, giving, receiving, or soliciting something of value to influence actions improperly.

Civil Penalties

fines imposed by regulators for insider dealing or market abuse.

COBRA

Consolidated Omnibus Budget Reconciliation Act.——- A U.S. federal law that lets employees and their families continue their group health insurance coverage temporarily after leaving a job — usually up to 18 months

Compensation

payment made to a client for losses caused by firm mismanagement, breach, or negligence.

Compliance Officer

individual responsible for ensuring a firm follows FSMA regulations and internal policies.

Conduct of Business Rules

standards under FSMA guiding how firms interact with clients, including transparency, fairness, and suitability of advice.

Consent

explicit permission from individuals for collecting or processing personal data.

Criminal Penalties

imprisonment or prosecution for serious breaches of insider dealing laws.

Customer Complaint

a formal expression of dissatisfaction by a client regarding services or products.

Data Controller

entity determining the purposes and means of processing personal data.

Data Processor

entity processing personal data on behalf of a data controller.

Data Protection Act 1998 (UK)

legislation governing the processing, storage, and security of personal data.

Data Security

protecting personal data against unauthorized access, loss, or corruption.

Data Subject Rights

rights of individuals regarding their personal data, including access, correction, and deletion.

Disciplinary Action

penalties imposed internally or by regulators for breaches, including fines, license suspension, or termination.

Dodd-Frank Act

A law enacted in the aftermath of the financial crisis of 2008-2009 that strengthened government oversight of financial markets and placed limitations on risky financial strategies such as heavy reliance on leverage

Embezzlement

theft or misappropriation of funds placed in one's trust.

Employee Retirement Income Security Act of 1974

Requires managers of plans to have a plan to make sure that they don't violate fiduciary responsibilities

Ethical Breach

violating codes of conduct, ethics, or professional standards.

Fair Processing

collecting and handling data lawfully, transparently, and for legitimate purposes.

Federal Reserve Act

a 1913 law that set up a system of federal banks and gave government the power to control the money supply

FICA

Federal Insurance Contributions Act-it is the money taken out of your paycheck for Social Security and Medicare.

Financial Conduct Authority (FCA)

regulatory body responsible for overseeing financial markets, enforcing conduct rules, and protecting consumers.

Financial Crime

illegal acts involving money or financial transactions, threatening the integrity of financial systems.

Financial Modernization Act (1999)

Allowed banks, insurers, and investment firms to compete outside their core area such as in insurance Congress is the only one with the power to change any of this.

Financial Ombudsman Service (FOS)

UK body resolving disputes between consumers and financial firms.

Financial Services & Markets Act 2000 (FSMA)

a UK law that regulates financial services and markets to protect consumers, maintain market integrity, and ensure proper conduct of firms.

Financial Services and markets act 2000

The Financial Services and Markets Act 2000 (c 8) is an Act of the Parliament of the United Kingdom that created the Financial Services Authority (FSA) as a regulator for insurance, investment business and banking, and the Financial Ombudsman Service to resolve disputes as a free alternative to the courts.

Financial Services Compensation Scheme (FSCS)

UK scheme that protects clients if a regulated firm fails.

Fraud

intentional deception to secure financial gain or cause loss to another party.

Front Running

placing trades in advance of client orders to profit from the anticipated market movement.

General Data Protection Regulation (GDPR)

EU regulation that supersedes some DPA 1998 provisions, emphasizing stronger privacy protections.

Glass-Steagall Act

(Banking Act of 1933) - Established the Federal Deposit Insurance Corporation and included banking reforms, some designed to control speculation. Repealed in 1999, opening the door to scandals involving banks and stock investment companies.

Gramm-Leach Bliley Act (GLBA)

Repealing Glass-Steagal Act of 1933, allows consolidation of commercial banks, investment institutions and insurance companies. Established a framework of responsibilities of federal and state regulators for these financial industries. It permits financial services companies to merge and engage in a variety of new business activities, including insurance, while attempting to address the regulatory issues raised by such combinations.

Insider Dealing (Insider Trading)

buying or selling financial instruments using material, non-public information to gain an unfair advantage.

Insider Dealing

illegal trading based on confidential, price-sensitive information

Internal Complaint Handling

procedures for recording, investigating, and resolving customer complaints.

Investment Advisers act of 1940

regulate people compensated for providing advice, about securities; must register with SEC and disclose backgrounds, compensation, etc

Investment Advisers act of 1940

regulate people compensated for providing advice, about securities; must register with SEC and disclose backgrounds, compensation, etc

Investment Company Act of 1940

Regulates mutual funds

Investor Protection

mechanisms like the Financial Services Compensation Scheme (FSCS) to safeguard clients against firm failure.

Know Your Customer (KYC)

process of verifying client identities to prevent financial crime.

MacCarran-Ferguson Act Repeal Greater efficiency Uniformity Laws More Competent Regulators

Market Abuse

illegal actions that distort market prices or mislead investors, including insider dealing, price manipulation, and misleading statements.

Market Surveillance

monitoring trading activity to detect irregularities or abuse.

Material Information

confidential information likely to influence an investor's decision (e.g., merger, earnings, regulatory approval).

McCarran-Ferguson Act (1945)

States that continued the regulation and taxation of the insurance industry are in the states best interest Federal antitrust laws only apply to areas that the state doesn't already regulate insurance.

Money Laundering

process of concealing the origins of illegally obtained money to make it appear legitimate.

National Banking Act of 1863

Created a new system of federally chartered banks called National Banks

Paul v. Virginia (1868)

Affirmed the right of the states to regulate insurance. The court ruled that insurance was not interstate commerce

Personal Data

any information relating to an identified or identifiable individual.

Price Manipulation

artificially inflating or deflating security prices to benefit certain parties.

Prudential Regulation Authority (PRA)

authority responsible for the prudential regulation and supervision of banks, insurers, and large investment firms.

Redress

corrective action taken to remedy harm caused to a customer.

Regulated Activities

financial activities defined under FSMA requiring authorization, e.g., accepting deposits, managing investments, or advising clients.

Regulatory Breach

failure to comply with FSMA, FCA rules, or other financial legislation.

Sanctions

legal restrictions imposed on individuals, countries, or organizations to prevent illicit financial activities.

Sarbanes-Oxley act of 2002

Created Public company accounting oversight board; addressed conflicts of interest, corporate responsibility and fraud, and public disclosure

Securities Act of 1933

a.k.a., "Paper Act," regulates the new-issue or primary market, requiring non-exempt issuers to register securities and provide full disclosure

Securities Exchange Act of 1934

created the SEC, forbids market manipulation and fraudulent practices; public corporations must keep current information on file with the SEC

Shortcomings of State Regulation Inadequate protection against insolvency Inadequate protection of consumers Improvements needed in handling complaints Inadequate market conduct examinations Insurance availability

Suspicious Activity Report (SAR)

a report filed to regulators when suspicious transactions are detected.

Terrorist Financing

providing funds or financial support for terrorist activities.

The Depository Institutions Deregulation and Monetary Control Act

passed in 1980, removed many rules limiting banks and savings institutions, letting them offer more services and compete better — like raising interest rates on deposits and expanding loan types

Tipping

providing insider information to another party for trading advantage.

Trust Indenture Act of 1939 Regulated the issuance of debt securities——A U.S. federal law that requires corporate bonds and debentures sold to the public to be issued under a formal agreement (trust indenture) with a trustee representing bondholders, ensuring protection and enforcement of their rights. This law helps prevent fraud and abuse in bond offerings

U.S. v. South Eastern Underwriters Association (1944)

The court ruled that insurance was interstate commerce when conducted across state lines and was thus subject to federal regulation.