|Derivatives (Investment Advice Diploma)
|Derivatives Level 4, Edition 6.2
Chapter 1, Section 2.1, page 4: NYSE Liffe London (Europe and the US) changes to ICE (London and the US), Euronext (Europe).
Chapter 1, Section 2.1, page 5: NYSE Liffe London changes to ICE London (twice).
Chapter 1, Section 2.3, page 7, Example 1: NYSE Liffe London changes to ICE London.
Chapter 1, Section 3.6, page 18, Example 1: NYSE Liffe London changes to ICE London.
Chapter 1, Section 3.7, page 18, Example 3: NYSE Liffe Paris changes to ICE Paris.
Chapter 1, Section 4.2, page 20, Example 6: NYSE Liffe London changes to ICE London.
Chapter 1, Section 6, page 22: NYSE Liffe changes to ICE (twice).
Chapter 2, Section 5.5, page 61: NYSE Liffe changes to ICE.
Chapter 2, Section 6, page 63: NYSE Liffe changes to ICE.
Chapter 2, Section 6.1, page 65: NYSE Liffe changes to ICE (x 7).
Chapter 3, Section 1.1, page 74: NYSE Liffe changes to ICE.
Chapter 3, Section 4.2, page 83: NYSE Liffe changes to ICE.
Chapter 3, Section 8, page 116: NYSE Liffe changes to ICE.
Chapter 3, Section 9.3, page 119: NYSE Liffe changes to ICE (twice).
Chapter 3, Section 12.2, page 163: NYSE Liffe changes to ICE.
Chapter 5, Section 1.1, page 176, table row 1, page 176: NYSE Liffe changes to ICE.
Chapter 5, Section 1.1, page 176, table row 9, page 176: NYSE Liffe (European exchanges) changes to Euronext (European exchanges).
Chapter 5, Section 1.2, page 178: NYSE Liffe changes to ICE (x 4).
Chapter 5, Section 1.5, page 180: NYSE Liffe changes to ICE.
Chapter 5, Section 2.2.3, page 188: NYSE Liffe changes to ICE.
Chapter 5, Section 2.3.1, page 188: NYSE Liffe changes to ICE.
Chapter 5, Section 2.4.1, page 190: NYSE Liffe changes to ICE.
Chapter 6, Section 1.3, page 199: NYSE Liffe changes to ICE (x 5).
Chapter 6, Section 1.3, exercise 1, page 201: NYSE Liffe changes to ICE.
Chapter 6, Section 1.3.2, page 201: NYSE Liffe changes to ICE.
Chapter 6, Section 1.4, page 202: NYSE Liffe changes to ICE (x 3).
Chapter 6, Section 2.2, page 204: NYSE Liffe changes to ICE.
Chapter 6, Section 2.5, page 205: NYSE Liffe changes to ICE.
Glossary, page 313: NYSE Liffe changes to ICE.
|UK Regulation & Professional Integrity
|The following amendments have been made to the edition 7 workbook.
Section 1 – The Regulatory Infrastructure
Learning Objective 5.1.2 – the Competition Commission has been replaced with the Competition and Markets Authority
Section 1.5 – The Bank of England (BoE)
The final paragraph has been deleted from the text.
Section 1.6 - The UK Competition Commission (CC)
This section has been replaced with the following wording:
1.6 Competition and Markets Authority (CMA)
The Competition and Markets Authority (CMA) took over the role and functions previously carried out by the Competition Commission and the Office of Fair Trading.
The CMA came into being on 1 April 2014. It works to promote competition for the benefit of consumers – both within and outside of the UK. Its main aim is to make markets work well for consumers, businesses and the economy. It is not solely looking into competition within the financial services industry.
The CMA has five strategic goals:
1. To deliver effective enforcement to deter wrongdoing, protect consumers and educate businesses.
2. To extend competition frontiers by using the markets regime to improve the way competition works, in particular within the regulated sectors.
3. To refocus consumer protection, working with its partners to promote compliance and understanding of the law, and empowering consumers to make informed choices.
4. To achieve professional excellence by managing every case efficiently, transparently and fairly, and to ensure all legal, economic and financial analysis is conducted to the highest international standards.
5. To develop integrated performance through ensuring that all staff are brought together from different professional backgrounds to form effective multi-disciplinary teams and to provide a trusted competition adviser across government.
The CMA is responsible for:
• Investigating mergers which could restrict competition.
• Conducting market studies and investigations in markets where there may be competition and consumer problems.
• Investigating where there may be breaches of UK or EU prohibitions against anti-competitive agreements and abuses of dominant positions.
• Bringing criminal proceedings against individuals who commit the cartel offence.
• Enforcing consumer protection legislation to tackle practices and market conditions that make it difficult for consumers to exercise choice.
• Co-operating with sector regulators and encouraging them to use their competition powers.
• Considering regulatory references and appeals.
Section 1.1 – The FCA’s and PRA’s Principles for Businesses
Section heading has been amended to read The FCA’s Principles for Businesses
Paragraph 1 – the following sentence has been removed “These principles also apply to the PRA.”
Paragraph 2 – “and the PRA” has been removed from the second sentence.
The following section has been added at the end of Section 1.1 to read:
1.1.1 PRA Fundamental Rules
In June 2014 the PRA published its Fundamental Rules, which replaced the Principles for Businesses. The Rules are high-level and collectively set out the PRA’s expectations of firms and act as an expression of the PRA’s general objective of promoting the safety and soundness of regulated firms. They are a clearer expression of the PRA’s expectations and more closely reflect the PRA’s underlying detailed rules than the Principles.
The Rules apply proportionately to all PRA firms, taking into account the difference between sectors and between sizes of firms. They apply with respect of activities wherever they are carried on.
The Fundamental Rules are:
• A firm must conduct its business with integrity.
• A firm must conduct its business with due skill, care and diligence.
• A firm must act in a prudent manner.
• A firm must at all times maintain adequate financial resources.
• A firm must have effective risk strategies and risk management systems.
• A firm must organise and control its affairs responsibly and effectively.
• A firm must deal with its regulators in an open and cooperative way and must disclose to the PRA appropriately anything relating to the firm of which the PRA would reasonably expect notice.
• A firm must prepare for resolution so, if the need arises, it can be resolved in an orderly manner with a minimum disruption of critical services.
Section 3.1.1 – Perimeter Guidance Manual (PERG)
In the second paragraph Section 150 FSMA has been amended to read Section 138D
Example of a Chinese Wall in Operation
Section 150 FSMA has been amended to read Section 138D
|28/04/2015 - 20/12/2015
|Investment, Risk & Taxation
Please see the below correction from Chapter 4, Section 11.3.3 of the Investment, Risk & Taxation Edition 4 workbook.
Common Tax Computations Example
James is 38 years old, married with children, and has gross monthly earnings of £3,800 from employment. Calculate his net monthly pay after income tax.
Gross income £3,800.00
Personal allowance (£9,440/12) £786.67 £0.00
Taxable income £3,013.33
Income taxable at basic rate £0 – £32,010/12) £2,667.50 £533.50
Income taxable at higher rate (£3,013.33 – £2,667.50) £345.83 £138.33
Total income tax payable £671.83
Net monthly pay £3,800 – £671.83 = £3,128.17
|02/01/2014 - 30/10/2014