Chapter 1

Question 1

Competent employees rule

Answer 1

Knowledge skills & expertise

Question 2

Who is subject to t & c

Answer 2

Advisers, supervised & overseers they can cause potential customer detriment

Question 3

How do you evidence competence

Answer 3

Eg adviser does 5 pension tfrs per week versus someone who does 1 per month…. Who is the highest risk?

Question 4

State 6 areas in Fca rule book regarding t&c

Answer 4

SMART NC
Supervising
Maintaining competence
Appropriate exams
Record keeping 
Training
Notification requirements
Competence

Question 5

4 area of financial advice requiring specialist exams

Answer 5

Lt care
Pension tfrs
Mortgage contracts
Broker funds

Question 6

Which 2 of the above you need the exam before you advise

Answer 6

Pension tfrs and broker finds

Question 7

5 consequences of not having adequate t&c records

Answer 7

1) can’t evidence competence
2) can’t evidence adherence to Fca rules
3h can’t evidence adherence to firms rules
4) sps/ cpd not met
5) tcf

Question 8

Trainees

Answer 8

Have 30 months from day they start role.
Excluding periods of continued absence of 60 days or more
Including previous time with previous employers In that role.

Question 9

What is difference between direct and indirect supervision?

Answer 9

Same activities only you do more for trainees. Also cpd only applicable for competence advisers

Question 10

How many hours cpd is required?

Answer 10

35 hours of which 21 must be structured

Question 11

What is a notification ?

Answer 11

Competence lapses

Large upheld complaints (>3/ 59k+)