Last day before holidaysss!!! Year 12 Business Last day before holidaysss!!!

Aims of today Clarify and ensure we know the advantages and disadvantages of each insurance type. Recap what was covered in Learning Aim A. Start Learning Aim B.

Assessment practice (25 mins) Identify two disadvantages of credit cards. (2 marks) Describe two examples of a type of borrowing. (2 marks) Compare and contrast a type of saving versus an investment. What are the risks and rewards associated with them. (6 marks) List three types of insurance groups and give an advantages and disadvantage of each. (9 marks)

Learning Aim B- Explore the personal finance sector Features of financial institutions Communicating with customers Consumer Protection in relation to personal finance Information guidance and advice

Features of financial institutions Offer financial service to individuals and/or businesses. They offer the ability to withdraw/deposit, obtain credit as well as offering advice on matters of personal or business finance.

Who do you think they are? Bank of England Banks Building Societies Credit Unions National Savings and Investments Insurance Companies Pension Companies Pawnbrokers Payday loans Research all 9 of the financial institutions, explain what they do and find at least one advantage and disadvantage of each.

Communicating with customers Branch Online Banking Telephone Banking Mobile Banking Postal Banking List the advantages and disadvantages for each.

Consumer Protection in relation to personal finance Financial Conduct Authority (FCA) Independent organisation with a remit to regulate the actions of financial providers. Authorisation Supervision Enforcement

Consumer Protection in relation to personal finance Financial Ombudsmen Service (FOS) Appointed by the government to represent the interests of the consumers in disputes with financial service providers. Funded by compulsory fees charged to financial institutions. If satisfactory means of going through the correct revenues first between the consumer and the financial institution fail, then the FOS is used.

Consumer Protection in relation to personal finance Financial Services Compensation Scheme (FSCS) Organisation in the UK that will pay compensation to a consumer of financial services if the service provider is unable to. Protects all savers in banks and building societies for up to £5000 e.g. if a bank goes bankrupt.

Consumer Protection in relation to personal finance Office of Fair Trading (OFT) Government organisation that regulates all markets, including financial markets. Encourages fair practice and healthy competition. Since 2014, responsibility for financial institutions has been passed to the FCA.

Consumer Protection in relation to personal finance Legislation and consumer credit. Laws passed by UK government to enforce regulation of any firm offering credit to consumers. Any firm offering hire purchases, lease agreements or credit cards must be registered with the FCA.

SMHW Find out the different ways a financial institution can communicate with customers e.g. a bank. List the different ways and then find an advantage and disadvantage for each.