The FOS will deal with complaints in respect to regulated products and advice. The complaint must have been made within 6 years of the event occurring or within 3 years of becoming aware of the reason to complain and not be subject to a court case. If the provider and the FOS has not dealt with the complaint made by the complainant to their satisfaction, they can take their complaint to the courts.

The FCA has four objectives; to remove all risk from financial markets is not one of them. The FCA cannot remove all risks, but they can protect consumers so that they can make informed decisions.

The FCA defines a ‘personal recommendation’ as advice on investments, conversion or transfer of pension benefits or on a home finance transaction that is presented as suitable for the client. Advice involves a recommendation to take a course of action based on an analysis of the clients circumstances, needs and goals. The advice has been influenced by the adviser. Generic advice provides generic information only and/or options to narrow down the consumers’ choices, without making an explicit recommendation, so is treated as unregulated.

As she is a BRT payer her tax rate is 20%. The income from the unit trust is taxed as interest after the £1,000 personal savings allowance. This leaves £1,000 taxed at 20% = £200.

The International Monetary Fund (IMF) is a global organisation with 190 member countries. It works to achieve sustainable growth and prosperity for all of its members by supporting policies that promote financial stability and monetary cooperation. The aim is to increase productivity, job creation, expand trade and economic well-being. The IMF also assists countries who need financial support by providing cheap loans in times of crisis.

Deposit based investments are considered low risk as the capital remains secure. Any asset backed investment is considered more risky as the investor may get back less than what they invested.

A Fixed rate deposit gives a fixed rate of return for the duration of the deposit. As rates are fixed, the customer is at risk of general interest rates rising on other accounts which will mean they will not benefit. Fixed rate accounts will have a penalty that will mean loss of interest if the account is closed during the term.

An unvested personal pension is a pension that has not yet been crystallised. If a person dies before 75 years of age the pension can be paid to any selected beneficiary as either a lump sum or an income based on the nomination of wishes tax free subject to the lifetime allowance (LTA) of £1,073,100. Any amount over the LTA is subject to a 55% charge.

Fiscal policy involves the actions taken by the government to either stimulate or calm the economy using a combination of taxation, spending and borrowing. When the government implements an inflationary budget they are trying to expand (inflate) the economy with lower taxes, borrowing and spending.

The Senior Managers and Certification Regime was Implemented due to the lack of redress for those in charge when things go wrong, highlighted as a result of the credit crisis.  The new framework will help identify individual accountability if things go wrong and will regulate individual conduct and standards in the financial services industry. Senior managers in Enhanced firms will have a Responsibilities Map that identifies which manager is responsible for each area. This will assist the regulators in identifying who is responsible if problems arise.