Financial Conduct Authority and PIK notes: Difference between pages

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(FCA).
Debt instruments based on non-cash payment of interest coupons.


One of two key regulators for the financial services industry in the UK.  
Interest is usually recognised by an increase in the amount of principal owed by the borrower.




The FCA's responsibilities include:
PIKs are generally either unsecured loans or deeply subordinated securities ranking just before equity in the capital structure.


*Protecting consumers;
This means that, in the event of a bankruptcy, PIKs are the last debts to be repaid, making them a high risk instrument for lenders and investors.  
*Ensuring the financial services industry remains stable; and
*Promoting healthy competition between financial services providers.


 
In order to compensate lenders for the risk, PIKs have to offer significantly enhanced rates of return to investors.
The Financial Conduct Authority's responsibilities were formerly undertaken by the Financial Services Authority (FSA).
 
The former FSA's other responsibilities were substantially transferred to the Prudential Regulation Authority (PRA).




== See also ==
== See also ==
 
* [[Coupon]]
* [[BaFin]]
* [[Equity]]
* [[CFTC]]
* [[Interest]]
* [[Competition & Markets Authority]]
* [[Notes]]
* [[Conduct]]
* [[Payment in kind]]
* [[Conduct risk]]
* [[Principal]]
* [[Deferred payment credit]]
* [[Secured debt]]
* [[Disclosure and Transparency Rules]]
* [[Subordinated debt]]
* [[Financial Services Authority]]
* [[Unsecured debt]]
* [[FRAND]]
* [[FSMA]]
* [[Insurance]]
* [[LIBOR]]
* [[National Competent Authority]]  (NCA)
* [[Office for Professional Body Anti-Money Laundering Supervision]]
* [[Price walking]]
* [[Prudential Regulation Authority]]
* [[Regulation]]
*[[Senior Managers Regime]] (SMR)
* [[Sludge practices]]
* [[Supervision]]
* [[Twin Peaks]]
 
 
==Other links==
*[https://www.treasurers.org/fca-business-plan/ ACT commentary on the FCA 2021-22 Business Plan, 16 August 2021]
 
*[https://www.fca.org.uk/ Financial Conduct Authority home page]
 
[[Category:Accounting,_tax_and_regulation]]
[[Category:Compliance_and_audit]]

Revision as of 14:21, 22 August 2017

Debt instruments based on non-cash payment of interest coupons.

Interest is usually recognised by an increase in the amount of principal owed by the borrower.


PIKs are generally either unsecured loans or deeply subordinated securities ranking just before equity in the capital structure.

This means that, in the event of a bankruptcy, PIKs are the last debts to be repaid, making them a high risk instrument for lenders and investors.

In order to compensate lenders for the risk, PIKs have to offer significantly enhanced rates of return to investors.


See also