Authorised And Approved Persons Flashcards
What are the threshold conditions for part 4A permission?
- Legal status
- Location of offices
- Effective supervision
- Appropriate resources and prudent conduct
- Suitability
- business model
Applications for dual-regulated firms are made to the …
PRA
What was the purpose of MiFID?
To create a common market with harmonised rules in which the financial industry can exist
What is the difference between EU revaluation and EU directives?
EU regulation is EU law implemented directly, whereas EU directives are implemented through local rules and regulations
What are the core services that can be passported under MiFID
- Reception and transmission of orders
- Execution of orders
- Portfolio management
- Investment advice
- Underwriting and placing
- Operating a MTF
Who is responsible for regulation?
The home state regulator, unless COBS
Who are the 6 groups exempt from authorisation?
Lloyd’s syndicate members Appointed representatives RCHs RIEs Members of Designated professional bodies Other exempt bodies
What are the 11 Principles for Business?
Integrity Skill, care, and diligence Management and control Financial prudence Market conduct Customers interests Communication with clients Conflicts of interest Relationship of trust Clients assets Relations with regulators
What are the main four rules of SYSC?
- General organisational requirements
- Employees, Agents, and other relevant persons
- Compliance, internal audit, and financial crime
- Whistleblowing (public interest disclosure act 1998)
What are the four significant influence functions under the FCA?
Governing functions
Required functions
Systems and control functions
Significant management function
In order to become approved, a person must be deemed fit and proper. What are the three aspects of the fit and proper test?
Honesty,integrity and reputation
Competence and compliance
Financial soundness
What are the four statements of principle that apply to all approved persons?
- Act with integrity
- Act with due skill, care and diligence
- Observe proper standards of market conduct
- Deal with the FCA and other regulators in an open and cooperative way
What are the 3 additional statements of principle that apply to only significant influence functions?
Ensure the the business of the firm is organised so that it can be controlled effectively
Exercise due skill, care, and diligence in managing the business of the firm
Ensure that the business of the firm complied with the relevant requirements
After how long is an individual still liable to disciplinary action?
3 years after the discovery of any wrongdoing
