BrandFT Set 2 Flashcards
Model Answers
Explain the key features of the Senior Managers Regime under SM&CR.
(6)
- Senior managers must have a ‘statement of responsibilities’
- They will be held accountable for what is contained within the statement
- They must formally accept responsibilities
- Ensures senior managers show that they have taken reasonable steps to prevent regulatory breaches in their area of responsibility
- All senior managers are subject to FCA Conduct Rules
- First and second-tier rules apply
You have a Trainee Adviser in your team who is 3 months into their training programme and making good progress towards Competent Adviser Status. They are currently advising in low-risk areas only.
Identify the activities and frequency of a typical supervisory regime for an adviser in this position.
(10)
Role-plays / observed meetings
* Quarterly
KPIs
* Monthly
Knowledge tests
* Quarterly
1-2-1s
* Weekly or monthly
File reviews
* 100%
Explain the difference between ‘functional’ and ‘team’ roles in relation to the work of Belbin.
(2)
- Functional: roles that have to be performed due to job / role
- Team: reflect the natural preferences / innate abilities
State and explain three circumstances where Belbin’s work could be useful to a manager.
(9)
When allocating specific tasks within a team
* Specific allocation to those with strengths and preferences which relate to the task requirements
* Will ensure the task is performed quickly and to a high standard
When developing team members
* Allocate tasks to those without the strengths or preferences
* This will help to develop their abilities
In recruitment activities
* Look to fill the gaps in team roles
* This will strengthen the team’s potential
You have recently attended a leadership course based on Scouller’s three levels of leadership.
State the three levels of leadership and briefly outline what each one means.
(6)
Personal leadership
* the impact we have on ourselves and then on others,leadership comes from within
Private leadership
* 1-2-1 relationships and how we deal with others
Public leadership
* the behaviour a leader displays when working with two or more people in a public setting
Identify two advantages and two disadvantages of the following communication methods:
(4)
Advantages
* Can send a large quantity of information
* Can be sent quickly
* Can send to a large number of people at the same time
* Cheap
Disadvantages
* May not be good for sensitive information
* May not be treated as important
* Reliant on email being read
* One-way communication/can be misinterpreted
Identify two advantages and two disadvantages of the following communication methods:
Small meetings
(4)
Advantages
* Interaction / two-way communication/feedback
* Can communicate with multiple people at once
* Can communicate on several layers - verbal and visual
* 1-2-1 good for sensitive issues
Disadvantages
* Can be time consuming
* Can be demotivational if not done well
* an be difficult to take a written record leading to disagreement as to what was decided
Identify two advantages and two disadvantages of the following communication methods:
Social media
(4)
Advantages
* Reaches a large potential audience
* Instant way of communication/quick
* Enables feedback
* Informal
Disadvantages
* Hard to control
* Can have restricted length of communication, e.g., Twitter
* Not for communicating detail
* No control over feedback messages
List the key requirements, as outlined by the FCA, for the referencing of a candidate for an SMF or certification function.
(6)
- Employment history over the past five years including an explanation of any gaps/directorships in the last 10 years
- Criminal records check
- Qualifications/knowledge
- Personal references and employment references should seek reference from last employer as a minimum
- Financial soundness helps assess ‘fit and proper’ status
- Records/information obtained through referencing needs to be retained
List the four Learning Styles identified by Honey and Mumford.
(4)
- Activists
- Reflectors
- Theorists
- Pragmatists
Explain how knowledge of Honey and Mumford’s learning styles can assist a manager in carrying out development activities with their team.
(4)
- Not all people learn in the same way.
- Everyone has a mix of the four styles but also a preference
- Learning will be most effective if the method matches the preferred style of the individual.
- Learning will be easier, faster and more enjoyable if the method matches the preferred style of the individual.
As a newly appointed manager, one of your key tasks will be coaching members of your call centre-based advice team.
List the skills required for effective coaching and explain how they contribute to the overall process.
(12)
Questioning skills
To probe for information, challenge the individual, summarise understanding, and provide structure
Listening skills
* Understand the individual’s awareness of the situation and encourage the individual to take ownership
Demonstration skills
* To explain / show the required skills at the required level
Feedback skills
* To ensure the individual is aware of previous performance
Observation skills
* To gather evidence / information to support and give quality feedback
Analytical skills
* To draw conclusions/ identify trends from KPI data and other sources
List the actions a firm must take in resolving client complaints.
(5)
- Investigate the complaint competently, diligently and impartially
- Assess fairly, consistently and promptly
- Offer redress or remedial action when appropriate
- Explain to the complainant promptly the assessment, decision and offer of any remedial action or redress
- Comply promptly with any offer of remedial action or redress accepted by the complainant
State the timescales within which the Financial Ombudsman Service will consider complaints.
(3)
- Within six months of the final response from the firm
- Within six years of the event or three years of the complainant becoming aware if longer
- Complaints outside these timescales can be considered in exceptional circumstances
Under UK GDPR:
Explain what information the rules apply to.
(4)
- Personal data of an identified living individual
- Personal data includes sensitive data such as ethnic origin, health and religion and can include online identifiers such as IP address
- Applies to automated personal data and to manual filing systems
- Personal data that has been anonymised can be included depending on how easily it is attributed to a particular individual
Under UK GDPR:
State the six Data Protection Principles.
(6)
- Lawfulness, fairness, and transparency
- Purpose limitation
- Data minimisation
- Accuracy
- Storage limitation
- Integrity and confidentiality
Explain briefly the term ‘Key Performance Indicator’.
(2)
- A clearly defined set of measures
- To judge performance against
List five common KPIs used by businesses to measure the performance of advisers.
(5)
- Fact-find completion
- Persistency / cancellations
- Range of advice provided
- Complaints from investors
- Conduct and Values
Explain what ‘inputs’ and ‘outputs’ measure.
(2)
Inputs:
* The activity / effort being put into the job
Outputs:
* The results of the activity
Explain the main aims of a 1-2-1 meeting.
(6)
The 1-2-1 meeting allows the manager to:
* Check current performance against agreed standards
* Identify training/development needs
* Identify areas of strength
* Give feedback on progress
* Identify problem areas
* Have two-way communication with individual team members
State what it is important for management information to measure in relation to the fair treatment of customers.
(2)
- How the firm is delivering effective consumer outcomes
- Rather than just measuring processes
List the factors which contribute to making a management information system effective.
(5)
- Management information should be:
- Relevant and process up-to-date information only
- Accurate
- Timely
- Can be accessed quickly and efficiently
- Cost-effective for the business
State two potential consequences of a failure of management to demonstrate reasonable behaviour when dealing with disciplinary issues, under the ACAS Code of Practice.
(2)
- The employee may have grounds to claim wrongful dismissal
- If a tribunal finds in favour of the former employee, their award may be uplifted by 25%
List the three stages which disciplinary procedures are likely to follow.
(3)
- First warning
- Final written warning
- Dismissal or action short of dismissal
List the steps in the process which the ACAS Code of Practice sets out as accepted practice when disciplinary action is deemed necessary.
(5)
- Establish the facts of each case
- Inform the employee of the problem
- The meeting
- Decide on appropriate action
- Opportunity to appeal
