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Unit 1: Financial Services, Regulation and Ethics (FSRE)

Unit aims

The unit explores the environment within which the financial services industry operates and the key components and interrelationships of the financial system. The unit focuses on the principles underpinning the regulatory framework and the implications for the advice process. The unit also develops the learners’ understanding of the importance of concept of risk with specific focus on how risks relate to institutions and individuals. The unit also focuses on the legal concepts relevant to financial advice and the interplay between regulation and legislation. The unit examines the FCA’s approach to ethical and unethical behaviours and develops learners’ understanding of the Code of Ethics. Finally, the unit introduces the concept of the skills required to advise clients.

Learning outcomes

On completion of the unit, the learner will understand:

  1. the UK financial services industry, in its European and global context
  2. how the retail consumer is served by the financial services industry
  3. the regulation of financial services
  4. the FCA’s responsibilities and approach to regulation
  5. the principles and rules as set out in the regulatory framework
  6. the legal concepts relevant to financial advice
  7. the different types of risk and how they relate to institutions and individuals
  8. the skills required when advising clients
  9. the FCA’s principles based approach to promote ethical behaviour
  10. the Code of Ethics and professional standards
  11. the differences between ethical and unethical behaviour.