9327720
Description
Mind Map by lucy blackman, updated more than 1 year ago
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Created by lucy blackman
almost 7 years ago
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TOPIC 3 - POLITICAL FACTORS 3.1
- REGULATION
- The global crisis in
2007-8
demonstrated the
importance of
having an effective
system of regulation
of the financial
services.
- since this happened, governments
around the world that were affected
changed their regulation systems to
make it more effective as
maintaining a sustainable industry.
- since this happened, governments
around the world that were affected
changed their regulation systems to
make it more effective as
maintaining a sustainable industry.
- The global crisis in
2007-8
demonstrated the
importance of
having an effective
system of regulation
of the financial
services.
- THE REGULATORS
- The present regulatory system
was established in April 2013
under the Financial Services Act
2012.
- the Bank of England, financial
conduct authority and
prudential regulation authority
all replaces the FS
- these are all responsible
for enforcing the system
of regulation that governs
the financial services
industry. they are also
responsible for
maintaining the stability
and ensuring that
consumers are treated
fairly and have their
interests protected.
- these are all responsible
for enforcing the system
of regulation that governs
the financial services
industry. they are also
responsible for
maintaining the stability
and ensuring that
consumers are treated
fairly and have their
interests protected.
- The present regulatory system
was established in April 2013
under the Financial Services Act
2012.
- CONSUMER PROTECTION
- many products are being miss sold by providers because consumers don't
understand what they are buying or because the provider has not made it clear or
persuades customers to buy products that they do not need in order to up sales.
- because of the risk of
miss selling products,
consumer protection
agencies are now in
place to help protected
financial services
consumers. this
includes...
- the financial ombudsman
service which is an
independent official body
that investigate consumer
complaints and resolve them.
this is funded by an annual
levy that every provider
covered by the scheme is
expected to pay.
- the financial services
compensatin scheme
that provides help if a
bank, building society or
something else cannot
pay to its customers
because it has gone out
of business. all business
authorised by the FCS
are covered by this. this
is funded by the
providers who are
members of the scheme.
- the financial ombudsman
service which is an
independent official body
that investigate consumer
complaints and resolve them.
this is funded by an annual
levy that every provider
covered by the scheme is
expected to pay.
- many products are being miss sold by providers because consumers don't
understand what they are buying or because the provider has not made it clear or
persuades customers to buy products that they do not need in order to up sales.
- THE POLOTICAL AGENDA
- regulation and consumer
protected is sometimes seen
as measures that try to stop
financial services providers
from miss selling for
example. but, there are
another set of government
policies known as the political
agenda. this is focused on
helping to ensure that people
have access to the benefits
that financial products are
services can provide.
- regulation and consumer
protected is sometimes seen
as measures that try to stop
financial services providers
from miss selling for
example. but, there are
another set of government
policies known as the political
agenda. this is focused on
helping to ensure that people
have access to the benefits
that financial products are
services can provide.
- SOCIAL EXLUSION AND SOCIAL INCLUSON
- An important policy in the agenda
is social inclusion. the certain
groups of people or individuals
who are denied access to the
benefits enjoyed by post people in
their society are known as socially
excluded. unemployed people,
people with a non permanent
address or those with a poor
history find it difficult to open a
bank account or take out a loan.
- a full inclusion society can -
- participate fully in community life
- influence decisions affecting them
- are able to take some responsibility for what happens in their community
- can exercise a right of access to the info and support they may need
- have an equal access to services and facilities
- have an equal access to services and facilities
- can exercise a right of access to the info and support they may need
- are able to take some responsibility for what happens in their community
- influence decisions affecting them
- participate fully in community life
- excluded people are often excluded because
- physical/ mental illness or disability
- poor basic skills. e.g. maths, english
- live in remote area
- have low income because of low paid jobs
- are not working because they cannot find work
- are homeless/have no fixed address to give to an employer or bank
- are discriminated against
because of ethnicity, religion,
gender, age or disability
- are discriminated against
because of ethnicity, religion,
gender, age or disability
- are homeless/have no fixed address to give to an employer or bank
- are not working because they cannot find work
- have low income because of low paid jobs
- live in remote area
- poor basic skills. e.g. maths, english
- physical/ mental illness or disability
- An important policy in the agenda
is social inclusion. the certain
groups of people or individuals
who are denied access to the
benefits enjoyed by post people in
their society are known as socially
excluded. unemployed people,
people with a non permanent
address or those with a poor
history find it difficult to open a
bank account or take out a loan.
- FINANCIAL EXLUSION/INCLUSION
- Financial literacy means a
persons level of
knowledge and
understanding of financial
matters. this can be a
reason for financial
exclusion.
- if you do not have a
current account then
you may not be able to
have a savings account,
personal loan, credit
card, hire purchase,
unsruance policy, glad,
electricity and wages as
most of these need to be
paid by a direct debit.
- Financial literacy means a
persons level of
knowledge and
understanding of financial
matters. this can be a
reason for financial
exclusion.
- COMBATING SOCIAL/FINANCIAL EXCLUSION
- Banks and providers have been encouraged to offer a range of products
- provide info on its products that is accessible to everyone
- make their own efforts to promote inclusion through financial education
- this can be done through NatWest, Nationwide and Barclays
- this can be done through NatWest, Nationwide and Barclays
- make their own efforts to promote inclusion through financial education
- provide info on its products that is accessible to everyone
- the internet has also reduced exclusion by offering access.
- Banks and providers have been encouraged to offer a range of products
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