2.3.3 Code of Practice for Statement of Principle 2

Question 1

the following count as a failure to comply with the requirement for an approved person to act with due skill, care and diligence in carrying out their controlled function

Answer 1

1) Failing to inform a customer or the firm (or the firms auditors or actuaries) of material information in circumstances where they are aware, or should have been aware, of such information and that they should provide it.
2) Recommending an investment or carrying out a discretionary transaction for a customer, where they don’t have grounds to believe it is suitable for that customer
3) Undertaking, recommending or providing advice on a transaction without a reasonable understanding of the risk of exposure of the transaction to the customer
4) Undtransactions without a reasonable understanding of the risk of exposure of the transaction to the firm
5) Failing without good reason to disclose the existence of a conflict of interest in connection with dealings with a client
6) Failing to provide adequate control of a client’s assets, such as failing to segregate a client’s assets or to process payments in a timely manner
7) Continuing a controlled function despite failing to meet the knowledge or skill standards set out by the FCA
8) Failing to pay due regard to the interest of the customer without good reason

Question 2

2) Recommending an investment or carrying out a discretionary transaction for a customer, where they don’t have grounds to believe it is suitable for that customer

Answer 2

2) Recommending an investment or carrying out a discretionary transaction for a customer, where they don’t have grounds to believe it is suitable for that customer

Question 3

3) Undertaking, recommending or providing advice on a transaction without a reasonable understanding of the risk of exposure of the transaction to the customer

Answer 3

3) Undertaking, recommending or providing advice on a transaction without a reasonable understanding of the risk of exposure of the transaction to the customer

Question 4

4) Undtransactions without a reasonable understanding of the risk of exposure of the transaction to the firm

Answer 4

4) Undtransactions without a reasonable understanding of the risk of exposure of the transaction to the firm

Question 5

5)Failing without good reason to disclose the existence of a conflict of interest in connection with dealings with a client

Answer 5

5)Failing without good reason to disclose the existence of a conflict of interest in connection with dealings with a client

Question 6

6) Failing to provide adequate control of a client’s assets, such as failing to segregate a client’s assets or to process payments in a timely manner

Answer 6

6) Failing to provide adequate control of a client’s assets, such as failing to segregate a client’s assets or to process payments in a timely manner

Question 7

7) Continuing a controlled function despite failing to meet the knowledge or skill standards set out by the FCA

Answer 7

7) Continuing a controlled function despite failing to meet the knowledge or skill standards set out by the FCA

Question 8

8) Failing to pay due regard to the interest of the customer without good reason

Answer 8

8) Failing to pay due regard to the interest of the customer without good reason