10. The Application of FCA Rules

Question 1

What Is stated under section 19 of FSMA 2000

Answer 1

It is an offence to carry out regulated activity unless authorised or exempt

Question 2

What are the 2 types of advisers

Answer 2

Independent - offer unrestricted, unbiased advice. No influence from product provider or renumeration

Restricted - these are tied or whole of market advisers

Question 3

What is the new FCA principle

Answer 3

Principle 12 - Consumer duty

A firm must act to deliver good outcomes for retail customers

Question 4

What is the approved Persons Regime

Answer 4

It applies to appointed representatives and those exempt from the SM&CR

Question 5

What is the Code of Conduct (COCON)

Answer 5

The FCA’s high level standards of behaviour which applies to all staff that are customers facing or oversight responsibility

Question 6

How many outcomes do firms need to achieve to ensure fair treatment of customers

Answer 6

6

Question 7

What Is Training and Competence (TC)

Answer 7

Rules to ensure firms employees remain competent and supervised

Question 8

what is the Markets in Financial Instruments Directive

Answer 8

MiFID came into effect on 1st November 2007 and introduced requirements on firms conduct of business and internal organisation

Question 9

What’s is MiFID II and when was it introduced

Answer 9

Came into force January 2018

Applies to firms providing investment services and advising on structured deposits