1. Regulatory Framework - Section C & D

Question 1

What 5 things must a firm ensure that all staff are?

Answer 1

Competent
Remain competent
appropriately supervised
regularly reviewed
appropriate level of competence

Question 2

What 3 things must a firm’s recruitment policy consider

Answer 2

Match the level of competence with the role
References and qualifications
Gaps in employment

Question 3

What 3 things must training be?

Answer 3

Up to date
Take into account the skill & knowledge requirements of the role
Reflect changed and anticipated changes in the firm and market

Question 4

When would an intermediary not require Professional indemnity insurance?

Answer 4

When they can rely on a guarantee by another authorised person with assets of more than 10 million pounds

They are a subsidiary of a bank, building society or insurance company and can use the parent company’s name or liabilities for a guarantee.

Question 5

What must a professional indemnity policy do?

Answer 5

Cover negligence of the firm and it’s staff/reps

Cover ombudsman service awards up to 355,000, dishonesty of staff, AR’s and their principals.

Meet set minimum limits of cover and maximum excess levels

Apply retrospectively to claims regarding past work

Question 6

Where must client’s money be kept, and how long after receiving it must it be banked?

Answer 6

In a separate client bank account, it must be deposited within 1 day of receipt.