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FCA Mock Exam Questions and answers | 2024/25 | Rated A+
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FCA Mock Exam Questions and answers | 2024/25 | Rated A+
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FCA Mock Exam Questions and answers | 2024/25 | Rated A+ Which of the following does not have any rights under FSCS? Authorized firm with respect to general insurance. - A retail client, trustee of scheme with assets and a small biz with regard to general insurance all have rights What best represents FCA view on industry guidance? The FCA will not monitor or enforce compliance of INDUSTRY guidance b/c it is not mandatory Market abuse is different than insider dealing in all of the following ways except? Market abuse is based on civil burden -balance of probabilities; it should be easier for the FCA to demonstrate abusive behavier; and it can be applied to commodity derivati ves. It is not true that it should be easier for the FCA to impose a custodial sentence as only FINES can be imposed. What best reflects the firm systematic framework (FSF) of FCA? Risk-based approach Proactive Supervision = FSF = preventative work thr ough the structured conduct assessment of firms. Event driven = remedial/reactive work = deals with problems that are emerging or have happened Issues and Products = thematic supervision/intensive campaigns Tools = Diagnostic; Monitoring; Preventative; Remedial What is minimum reflection period for sale of life or pension product irrespective of whether the firm offers advice? 30 days for life and pension products. Firms may voluntarily offer longer periods at the same or better terms. The Collective Investment Scheme Sourcebook does not apply to: Depository of ICVC Trustees of authorized unit trust Director of investment trust Manager of an authorized unit trust Director of an investment trust -Investment companies are not classified as a CIS and the refore not covered by the CIS sourcebook Which is responsibility of HOST: Authorization of branch COBS Fitness and prop of firm employees Capital adequacy COBS is responsibility of HOST - A firm when conducting biz in another EEA state under MiFID must follow HOST COBS The Tax and Chancery Chamber of the Upper Tribunal is operated by? A government department The Tribunal as an appeal committee is independent of the Regulator. Run by Min istry of Justice. To which do COBS apply: Long term insurance related to life policy Offering car breakdown insurance Credit unions Regulated mortgages Long term insurance - Insurance is DIB and rest are not Under FSMA 2000 can a person be both authori zed and exempt depending on activities? A person cannot be both authorized and exempt regardless of activities at the same time. For example, a firm cannot conduct some regulated activities as an authorized person and others in the capacity of an appoint ed representative of another firm. Who can be an eligible complainant A small retail customer How often should an authorized firm report to the FCA re: customer complaints? Twice a year Under RDR what is true about fees? The charge can be ongoing and ba sed on a percentage of the funds invested. Advisors must move to fee -based charging. This can be upfront or an ongoing fee for a percentage of funds invested (as long as an ongoing service is provided). Fees should be itemied and disclosed up front and ba sed on service not on product. Which is client money? A transaction fee due the firm Money deposited in an approved bank account Settlement charge due the firm Money held in excess to client's obligations Money held in excess to client's obligations Any money due the firm is not client money. Approved banks do not need to treat money deposited with them as client money. Where a firm sells assets held as security against client obligations, the amount equal to the obligation is the firm's money. Howeve r anything in excess of this obligation has to be returned to the client or treated as client money. Which is always a specified activity? Acting as ccy dealer An accountant offering investment advice Operating a stakeholder pension scheme Acting as trust ee for a trust Operating a stakeholder pension scheme - Currency options and currency futures would be specified but not spot or forward deals. Accountant offering advice will not be specified if incindental. Acting as a trustee is not specified provided he is not being paid. A financial advisor makes a personal recommendation on a retail investment product to a retail client. When would he NOT send suitability report? Transactions in a reg CIS Surrender of stakeholder pension Making withdrawals on short term annuity Small life policy from friendly society Small life policy Other exclusions are recommendations relating to: a regulated CIS where the firm is acting as investment manager, the client is habitually resident outside EEA, increases to a reg prem ium in an exsiting contract; an additional single contribution to a product where a single contribution had already been paid. According to JMLSG, how long must client verification records be kept? 5 years from date account was closed Which is not a per se eligible cpty? Insurance co UCITS scheme Local authority Supranational org Local authority Local are retail clients and can never be treated as eligible cpty Which is not senior manager? Investment advisor Internal audit CEO MLRO Inv advisor Inv advisor is a certification function which is the only category of function not classified as senior manager function What is required for all firms?The benefits of buying summaries with Stuvia:
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