Cefs - Unit 1 Topic 8

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  • Created on: 17-03-14 16:19
Captal
The money or assets owned by an individual or a business. In the case of a financial services provider, it refers to the funds provided by the shareholders, not deposits from customers.
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Chancellor of the Exchequer
The British cabinet minister responsible for financial and economic matters an in charge of the treasury.
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Citizens Advice
A charity providing free, independent, confidential and impartial advice on the rights and responsibilities of citizens and consumers.
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Consumer Credit
This is another term used for borrowing. It is important to understand that 'taking credit' or 'buying on credit' refers to borrowing. However, a credit into a bank account means paying money in.
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Consumer Credit Act 2006
An act of Parliament aiming to strengthen consumer protection when borrowing money.
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Credit Crunch
A reduction in the availability of loans or tightening of the conditions needed to obtain one. The global financial crisis of 2007-08 began when financial institutions became reluctant to lend finds to one another.
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Credit Union
A mutual organisation (owned by its members) that provides a range of financial products e.g. savings accounts and personal loans to members. They must share a common bond such as working for the same employer or live in the same area.
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Current Account
Bank or building society accounts where people can store their money in the form of electronic balances and withdraw to make payments.
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Debit Card
A card that can be used to make transactions face-to-face in for example shops, and to make payments online and over the phone.
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Deposit
A sum of money placed by a customer with a bank.
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Financial Conduct Authority (FCA)
One of the two main regulators of financial services in the UK (the other is the Prudential Regulation Authority)
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Financial Ombudsman Service (FOS)
An independent body set up by Parliament that settles customer complaints about providers with no charge to consumers
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Financial Policy Committee (FPC)
A part of the Bank of England that monitors and responds to risk posed to the entire financial services market. Its focus is on the entire financial services market makes is macro-prudential authority.
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Financial Services Compensation Scheme (FSCS)
A compensations scheme that pays compensation to account holders of up to £85,000 per provider if the provider goes into default (in other words cannot pay account holders the money they have in their accounts).
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Independent Commission on Banking (ICB)
A committee formed in June 2010, as a response to the global financial crisis. It considered reforms to the UK banking sector to promote both financial stability and competition.
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Independent Financial Adviser (IFA)
A professional who makes financial recommendations to clients, based on available financial products across a wide range of providers.
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Investment Banks
Banks that are involved in trading financial assets such as shares, underwriting issues of shares by other institutions & advising on mergers and acquisitions. These Banks do not provide services such as current accounts etc. provided by retail banks
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Lending Code
A voluntary code of conduct that sets out good practice for the provision of advice about loans, credit cards, charge cards & current account overdrafts. It assures customers that subscribed providers follow the Code & gives info on service expected.
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Liquidity
The assets a business holds in the form of cash that can be used to meet immediate demands of payment. (Many assets cannot be used in this way such as a company that owns machinery as in order to make a payment they would have to sell them).
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Money Advice Service
A consumer information service set up by the government to help people make informed financial decisions.
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Money Laundering
The process of making 'dirty' money (money gained from criminal activities) 'clean' - in other words making it look as if it has been acquired legitimately.
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Mortgage
A loan taken out to pay for a property, usually over long term such as 25 years.
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Office or Fair Trading (OFT)
The government department that monitors how businesses compete with each other, with the aim of making sure that competition serves in the interest of consumers as well as businesses themselves.
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Overdraft (authorised and unauthorised)
A facility that allows the an account holder to take out more money than what is in their account. Authorised is agreed with the bank in advance within certain limits. Exceeding these limits/going over limits is unauthorised.
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Payday Loan
A loan designed to be taken out for only a very short period which charges a very high APR.
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Payment Protection Insurance (PPI)
An insurance product intended to ensure repayment of loans should a borrower face unexpected events that prevent them from repaying debt.
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PIN
A secret personal identification number that verifies a person's identity to a system e.g. at point of sale for credit and debit cards.
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Prudential Regulation Authority (PRA)
One of the two main financial regulators in the UK (the other is the Financial Conduct Authority).
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Retail Banks
Banks tha deal with customers directly for example providing current accounts and mortgages.
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Sub-prime Market
Lending and borrowing by consumers with untested or poor credit histories.
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Transactions
Buying or selling something.
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Treasury
Her Majesty's (HM) Treasury, the government department responsible for development and implementation of financial and economic policy.
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Other cards in this set

Card 2

Front

The British cabinet minister responsible for financial and economic matters an in charge of the treasury.

Back

Chancellor of the Exchequer

Card 3

Front

A charity providing free, independent, confidential and impartial advice on the rights and responsibilities of citizens and consumers.

Back

Preview of the back of card 3

Card 4

Front

This is another term used for borrowing. It is important to understand that 'taking credit' or 'buying on credit' refers to borrowing. However, a credit into a bank account means paying money in.

Back

Preview of the back of card 4

Card 5

Front

An act of Parliament aiming to strengthen consumer protection when borrowing money.

Back

Preview of the back of card 5
View more cards

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