what are the key features of financial information and advice?
accurate, up to date, transparent, timely and suffucient but not too complex
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what are the key factors influencing financial choices?
the strength of the original want or aspiration, feasibility of access to a financial product to fulfil the want or aspiration, information sources, personality of the customer, price and product features and reputation of the provider
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what is the role of the financial conduct authority?
to protect consumers, enhance the integrity of the financial system and promote effective competition
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what is the role of the prudential regulation authority?
to promote the safety and soundness of firms and protect insurance policy holders
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what happens if a provider fails to comply with regulator rules?
they may be fined or lose the authorisation to practise
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what is organisational culture?
the culture of an organisation refers to its shared values. a provider that behaves ethically must treat its customers in an ethical way
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what are the 6 treating customers fairly outcomes set by the financial conduct authority?
the fair treatment of customers is central to corporate culture, products are designed to meet the needs of identified consumer groups and targeted accordingly, consumers are provided with clear info before during and after sale
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what are the 6 treating customers fairly outcomes set by the financial conduct authority?
advice is suitable and takes account of consumer's circumstances, consumers are provided with a service firms have led them to expect and consumers don't face unreasonable after sale barriers to change products
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what is the purpose of the TCF policy enforced by the FCA?
to ensure all firms treat customers fairly and put their well being at the heart of business
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what is the role of the office of fair trading?
to make markets work well for consumers, ensuring rigorous competition between businesses and prohibiting unfair practices such as rogue trading
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what is executive remuneration?
the huge salaries and performance related bonuses that the top directors of banks get
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what is an ethical response to executive remuneration?
limiting the salaries and bonuses it pays to top staff, but maintaining a reasonable difference from pay of lower levels
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what is corporate social responsibility?
self imposed ethical policy- goes beyond interests of shareholders and top managers
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what are the criticisms of corporate social repsonsibility?
some say it aims to create a good image to cover up its less than ethical policies and others say it distracts from main role of business- if it didnt spend money on CSR it could lower interest rates for borrowers
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what are ethical investments?
investments made in companies that take into account the wider impact of their activities on society
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what is the role of the ethical investment association?
an organisation that brings together and gives support to financial advisers who want to promote green and ethical investments
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what is the "principles for responsible investment" initiative?
comes under the UN environmental programme. it is a set of aspirational and voluntary guidelines that want to address social and environmental issues
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what is social sustainability?
• Creating communities that foster well-being, peace, security and justice for the people who live in them, by making education available to everyone and by reducing the gap between rich and poor
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what is economic sustainability?
• Reducing the undesirable consequences of economic activity by maintaining consumption on a sustainable scale rather than trying to achieve continual growth and by regulating markets to reduce inequalities
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what is environmental sustainability?
• Reducing the negative human impact on the earth’s ecosystems by reducing atmospheric pollution, managing water and land responsibly and limiting human consumption of the earth’s resources
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what are 3 examples of things that contradict the principles of economic sustainability?
selling unaffordable loans, misselling PPI and precipice bonds
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what are precipice bonds?
investments with a maturity of 3-5 years that offered high income but no protection against the loss of capital invested
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Other cards in this set
Card 2
Front
what are the key factors influencing financial choices?
Back
the strength of the original want or aspiration, feasibility of access to a financial product to fulfil the want or aspiration, information sources, personality of the customer, price and product features and reputation of the provider
Card 3
Front
what is the role of the financial conduct authority?
Back
Card 4
Front
what is the role of the prudential regulation authority?
Back
Card 5
Front
what happens if a provider fails to comply with regulator rules?
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