1 - The Regulatory Environment Flashcards

1
Q

Which 2 securities are not specified investments under FSMA 2000?

A

-Tangible assets, such as real estate and commodities (excluding bullion)
-Derivatives used for risk management

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Which body is responsible for regulating capital requirements of financial firms?

A

Prudential Regulation Authority (PRA)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What are the 4 main roles of government?

A

-Provide services the private sector won’t
-Regulate firms to protect the consumer
-Intervene in the distribution of income
-Stabilise the economy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

When is the Regulatory Decisions Committee required to issue a statutory notice?

A

At the beginning of an investigation of an authorised firm or certified person

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What must someone be to undertake investment business in the UK?

A

Authorised OR exempt

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

To who does the COLL sourcebook apply?

A

Directors and depositaries of ICVCs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Who are the 3 European supervisory authorities?

A

-European Securities and Markets Authority (ESMA)
-European Banking Authority (EBA)
-European Insurance and Occupational Pensions Authority (EIOPA)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What does Administering of investments cover?

A

Settlement

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

How is the FCA financed?

A

By authorised firms in the financial industry

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What is the maximum penalty for unauthorised investment business?

A

2 years in jail and an unlimited fine

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Which body makes significant decisions on disciplinary measures?

A

The Regulatory Decisions Committee (RDC)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What are the 3 main objectives of the Financial Services Action Plan (FSAP)?

A

-Create a single EU wholesale market
-Achieve open and secure retail markets
-Create state of the art prudential rules and structures of supervision

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Who is the Tax and Chancery Chamber of the Upper Tribunal set up by?

A

The Ministry of Justice

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What is ESMA’s main power?

A

Investigating non-compliance with EU law

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What are the 3 pillars of FCA supervision?

A

-Firm systematic framework
-Event-driven work
-Issues and products

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

When considering a risk assessment under the Firm Systematic Framework, what key elements does the FCA consider?

A

Interests of consumers and market integrity

17
Q

What 4 requirements does the Common Reporting Standards (CRS) set out?

A

-The financial account information to be exchanged
-The financial institutions required to report under the Standard
-The different types of accounts and taxpayers covered
-Common due diligence procedures to be followed by financial institutions

18
Q

Where would a firm find guidance on the necessity and process of authorisation for conducting regulated activities?

A

Perimeter Guidance Manual (PERG)

19
Q

A per the ‘turnover test’ what is the minimum turnover level for the CMA to investigate a merger?

A

£70m

20
Q

What are the 3 main CFA Institute Standards of Professional Conduct?

A

-Professionalism
-Duties to Clients
-Responsibilities as a CFA Institute Member or CFA candidate

21
Q

Which body of the Bank of England is responsible for protecting and enhancing financial stability?

A

Financial Policy Committee

22
Q

Which regulatory body is responsible for overseeing the systematic infrastructure of central counterparties, securities settlement systems, and recognised payment systems?

A

Bank of England