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CeMap 1 > CEMAP 1 UNIT 2 Katie > Flashcards

CEMAP 1 UNIT 2 Katie Flashcards

1
Q

Which of the following is NOT a requirement under the Financial Conduct Authority Core conduct of business rules in respect of dealing for customers?

A. Sales of share at best price
B. Purchase of term assurance at lowest available rate
C. Dealing at prices which are advantageous for the size and type of transaction
D. Justification of switching from the customers point of view

A

B. Purchase of term assurance at lowest available rate

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2
Q

The financial Conduct Authority:
A. regulates the majority of the financial services industry except banking
B. Cannot operate until the financial services Act is 3 years old
C. Is a statutory body
D. Intends to maintain the existing SIB principles

A

C. Is a statutory body

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3
Q

The FCA Statement of principle concerning relations with regulators require that a firm in any dealings with regulators acts:
A. in an open and co operative manner
B. in a timely fashion answering enquires in 10 days
C. With reasonable care skill and diligence
D. Without prejudice to clients interests

A

A. in an open and co operative manner

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4
Q 
Where an independent financial advisor is giving investment advice to a stockbroker the stockbroker will be treated as:
A. An execution only customer
B. A business investor 
C. A professional Investor
D. A market counterparty
A

D. A market counterparty

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5
Q

Full disclosure rules must be complied with each time an advisor recommends:
A. the purchase of a product covered by the rules
B. The purchase or variation of a product covered by the rules
C. The purchase or variations of a product covered by the rules but only where that variation involves an increase in premium
D. Any advice on non packaged investment product

A

B. The purchase or variation of a product covered by the rules

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6
Q

The know your client rule requires:
A. A face to face interview
B. Completion of limited financial questionnaire
C. The advisor should obtain proper knowledge of customers financial circumstances and needs
D. Completion of a detailed fact find

A

C. The advisor should obtain proper knowledge of customers financial circumstances and needs

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7
Q 
Which rule comes into effect when it could be inferred that an independent intermediary has a vested interest in a product being sold? 
A. Best Advice 
B. Reason Why 
C. Better than best advice.
D. Know your customer
A

C. Better than best advice.

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8
Q 
Who would most likely be affected by the best execution rule?
A. Stockbrokers
B. Independent Intermediaries
C. Company representatives 
D. Toed Agents
A

A. Stockbrokers

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9
Q

The Frequency of compliance visits by the FCA officers to particular firm depends on:
A. Number of approved individuals employed within the firm
B. Size of the firm measured by gross income
C. Type of firm
D Regulators risk assessment

A

D Regulators risk assessment

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10
Q

When advising clients a restricted single tied advisor must:
A. only provide information on products from a panel of providers
B. Only provide advice on the products of the provider she represents
C. Provide advice on all products but can only sell the products she represents
D. Provide advice on and sell all products from the market place

A

B. Only provide advice on the products of the provider she represents

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11
Q

Under the financial services act cancellation rules if a cancellation notice is completed and returned within 14 days the client of a regular premium unit link life policy is entitled to :
A. the bid value of units
B. the offer price less any shortfall between the investment an cancellations
C. A full refund of premiums
D. Nothing

A

C. A full refund of premiums

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12
Q

Which one of the following criteria is not one the must be satisfied by an advertisement in order to comply with the FCA guidelines on advertising?
A. it must be fair and not misleading
B. It must be authorised by FCA
C. It just be tailored to the likely level of sophistication of the reader
D. It must clearly state the tax position in respect of contributions and benefits

A

B. It must be authorised by FCA

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13
Q

The Financial services compensation scheme is available to investors who:
A.Have suffered loss through adverse movement in the market place
B. Have suffered loss from authorised firm which has ceased business or is likely to do so
C. Suffered loss due to receiving bad advice from an unauthorised firm
D. Received bad advice from authorised advisor who has no professional indemnity insurance

A

B. Have suffered loss from authorised firm which has ceased business or is likely to do so

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14
Q

Better than best advice must be given when:
A. A restricted advisor recommends a product of one company over another
B. Independent intermediaries recommend a product with which they are a connected person
C. A tied agent introduces a client to an independent advisor
D. An independent intermediary recommends an insurer which has good investment performance but poor administration

A

B. Independent intermediaries recommend a product with which they are a connected person

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15
Q

The requirement to an investment advisor should not unreasonably churn a customers investment or unnecessarily switch a customers policy is:
A. One of the FCA statements of principles
B. one of the FCA conduct of business rules
C. An ethical principle with no standing in law
D. A professional code of practice

A

B. one of the FCA conduct of business rules

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16
Q

Under the money laundering regulations it is an offence to:
A. Accept any investment business without proof of identity
B. Make a malicious report on a suspect
C. Tip off a suspect that an investigation is being held
D. Appoint a money laundering office with a criminal record

A

C. Tip off a suspect that an investigation is being held

17
Q 
the money laundering regulations require all life offices to put in place a money laundering:
A. telephone helpline
B. Training programme 
C. Indemnity Scheme 
D. Investigations department
A

B. Training programme

18
Q

Jane is arranging a loan on her residential property post oct 22004 but which is not subject to FCA regulation. this is because:
A. its a business BTL
B. the loan is for a purpose other than house purchase.
C. The security of the loan is a second charge
D. The term loan is less than 10 years

A

A. its a business BTL

19
Q

Under the proceeds of crime act 2002 where the money laundering is suspected disclosure must be made either to the firm s Money laundering reporting officer or to the:
A. Department for business innovation and skills
B. Joint Money Laundering Steering Group
C. National Crime Agency
D. Treasury Select Committee

A

C. National Crime Agency

20
Q 
Sam has received a personalised key facts illustration containing more elements than usual relating to the specific nature of the product and additional risks. What type of mortgage product must she be arranging?
A. Lifetime mortgage
B. A cash back mortgage 
C. A re mortgage 
D.  A further advance
A

A. Lifetime mortgage

21
Q 
The Financial Ombudsman Service:
A. Has replaced the Pensions Ombudsman 
B. Has replaced Insurance Ombudsmen 
C. Can make awards binding authorised firms without limits 
D. Can make awards binding on complaints
A

B.Has replaced Insurance Ombudsmen

22
Q

In addition to names and addresses of all the data controllers who have registered what other information is included in the register of data controllers?
A. Broad details of the data they process in terms of type purpose and the people to whom they want to give information
B. Specific details of the data they process in terms of names NI Numbers and DOB
C. Broad details of data they process on individuals credit rating and other personal data
D. Specific details of data they process on individuals tax liabilities and bank deposits

A

A. Broad details of the data they process in terms of type purpose and the people to whom they want to give information

23
Q

Which ONE of the following contracts would be subject to the provisions of Unfair terms in consumer contracts regulation 1999?
A. A contract between to businesses for the supply of gas piping
B. A contract for the sale of a house between private seller and buyer
C. An individually negotiated contract for the sale of a fitted kitchen
D. A standard service contract between an electrical company and consumer

A

D. A standard service contract between an electrical company and consumer

24
Q

Kevin has approached Colin to discuss pensions following a referral from Kevins client Darren. Colin asks who suggested he would be interested pensions. What should Kevin do?
A. Decline to answer as he has been requested not to divulge Darrens name
B.Give Darrens name having obtained his permission from the outset
C. Give Darrens name and briefly explain the nature of Darrens business with the company
D. Sate that he must obtain permission first

A

B.Give Darrens name having obtained his permission from the outset

CeMap 1 (2 decks)

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