Ch 5

Question 1

PRIN

Answer 1

Principles for Business

A general statement of the main regulatory obligations of the firm

Question 2

SYSC

Answer 2

Senior Management Arrangements, Systems and Controls

Rules and guidance on how key responsibilities for managing the business should be allocated among the firms senior management team and the systems and controls the firm should have in place

Question 3

COCON

Answer 3

Code of Conduct

Rules about the conduct

Question 4

High Level Standards

Answer 4

PRIN - Principles for Business
SYSC - Senior Management Arrangements, Systems and Controls
COCON - Code of Conduct
COND - Threshold Conditions
APER - Statements of principles and code of practice for approved persons
FIT - The fit and proper test for approved persons
FINMAR - Financial stability and market confidence
TC - Training and Competence
GEN - General Provisions
FEES - Feed Manual

Question 5

Prudential Standards (PRU) - Sets out prudential requirements for firms

Answer 5

GENPRU - Sourcebook for banks, building societies
BIRPU - Sourcebook for banks, building societies
IFPRU - Sourcebook for investment firms
MIPRU - Mortgage and Home Finance firms, and insurance intermediaries
IPRU-INV - for Investment Businesses
INSPRU - Insurers
IPRU-FSOC/IPRU-INS - Friendly societies and insurers

Question 6

PRA

Answer 6

Prudential Regulation Authority

Responsible for promoting the safety and soundness of systematically important firms

Question 7

FPC - Financial Policy Committee

Answer 7

Within the Bank of England
Responsible for horizon scanning for emerging risks
Can enforce capital requirements

Question 8

FCA Operational Objectives

Answer 8

Protect Customers
Promote Competition
Protect Financial Markets

Question 9

FCA Over Arching Objective

Answer 9

Ensure that markets function well

Question 10

FCA Principles

Answer 10

Efficiency & Economy
Proportionality
Sustainable Growth
Responsibility of Consumers
Senior Management Responsibility
Recognise differences in businesses carried out by regulated persons
Openness and Disclosure
Transparency

Question 11

Part 4a Permission

Answer 11

Any person wishing to carry out one or more regulated activities must apply to the relevant regulator for direct authorisation

Question 12

FCA is answerable to - for the way it carries out its duties

Answer 12

HM Treasury

The FCA is required to make an annual report to parliament

Question 13

PRA has 2 statutory objectives

Answer 13

Promote safety and soundness of regulated firms

Secure appropriate degree of protection for policy holders, specific to insurers

Question 14

ICOBS

Answer 14

Business Standards rules which apply to general insurance, pure protection (term, income and critical illness) and PPI

Question 15

Bank of England

Answer 15

2 main objectives - Monetary and Financial Stability