Chapter 1 Flashcards
What do FPC do and how often do they meet
Meet 4 times a year and issue biannual financial stability report
Remove or reduce systemic risks
Which one of the following statements concerning the Financial Policy Committee (FPC) is correct? The FPC meets
Quarterly and produces a biannual Financial Stability Report
Which of the following statements is NOT true of the Principles for Businesses?
They only apply to firms authorised by the FCA
Who is responsible for reducing risks to the financial system as a whole?
FPC
Which of the following is NOT a type of work under the FCA supervision model?
The Proactive Intervention Framework is a supervisory approach adopted by PRA and not the FCA.
PRA responsibility
Stability of markets
According to the Financial Services Act 2012, which one of the following is a statutory objective of the FCA?
The objectives are: Strategic objective: ensuring that the relevant markets function well Operational objectives are the following: securing an appropriate degree of protection for consumers, protecting and enhancing the integrity of the UK financial system, promoting effective competition in the interests of consumers.
Which of the following does reflect the range of sanctions that the PRA can impose on a firm breaching PRA rules?
Fine can be unlimited
Which of the following bodies oversees the macro-economic and financial issues that could cause instability in the UK?
FPC
Which of the following activities would be ‘out of scope’ under the FCA’s Consumer Duty initiative?
Providing group life assurance products is specifically excluded under the Consumer Duty, whether to employees of a company or to anybody else
Who appointes members of FCA
Treasury
Which of the following activities would be ‘out of scope’ under the FCA’s Consumer Duty initiative?
Providing group life assurance products to employees of a company
Providing group life assurance products is specifically excluded under the Consumer Duty, whether to employees of a company or to anybody else.
Applies to mortgage - actual and potential customers -n
All of the following are true of the FCA, except:
The FCA board is appointed by the Treasury, not by ‘the Crown’ (this would generally refer to the Monarch himself).
What are the principles for business
1 Integrity
2 Skill, care and diligence
3. Management and control
4. Financial prudence
5. Market conduct
6. Customers Interests / 7. Communications with clients (both replaced if in scope of consumer duty)
8. Conflicts of interest
9. Customers: relationship of trust
10. Clients’ assets
11. Relations with regulators
12. Consumer duty
Which of the following statements are correct?
The FCA is responsible for ensuring consumers get a fair deal
The PRA is responsible for stability of the markets
Which one of the following statements concerning the Financial Policy Committee (FPC) is correct? The FPC meets
Quarterly and produces a biannual Financial Stability Report
Who is responsible for reducing risks to the financial system as a whole?
FPC
Which of the following does not reflect the range of sanctions that the PRA can impose on a firm breaching PRA rules?
Max fine - fine is unlimited
Which of the following statements is not true of the Principles for Businesses?
They only apply to firms authorised by the FCA
Apply to all authorised firms - FCA and PRA. PRA authorised firms also comply with PRA Fundamental Rules (FR)
Who has overall responsibility for the UK’s financial system, including the institutional structure and the legislation that governs it?
HM Treasury
To whom is the PRA directly accountable?
Court of the Bank of England
Which of the following FCA Principles for Businesses is disapplied for firms that are in-scope of the Consumer Duty?
For firms that are in-scope of the Consumer Duty, both PRIN 6: Customers’ interests and PRIN 7: Communications with clients are replaced with PRIN 12: Consumer Duty.
Which of the following best represents the FCA view on industry guidance?
The FCA will not monitor or enforce compliance
