Chapter 1 Questions

Question 1

what does it mean to be dual regulated

Answer 1

prudential regulation is carried out by the PRA while its conduct is regulated by the FCA

Question 2

Which of the Principles for Businesses apply to an insurer’s need to ensure its employees are trained and competent for their role?

Answer 2

2: a firm must conduct its business with due skill care and diligence

Question 3

what are the three objectives of the PRA

Answer 3

promote safety and soundness of the firms it regulates
insurance firms to contribute to the securing of an appropriate degree of protection for those who are or may become insurance policyholders
facilitate effective competition

Question 4

what is the sole strategic objective of the FCA

Answer 4

ensure that all relevant markets function well

Question 5

what is a regulated firm expected to ensure under training and competence (TC)

Answer 5

employees are competent, remain competent, are appropriately supervised, competence is regularly reviewed and level of competence is appropriate to the nature of the business

Question 6

what is the FCA’s consumer duty

Answer 6

use data and technology to test and monitor customer outcomes
proactively detect and respond to emerging patterns before they lead to customer harm
address needs of diverse customers (particularly those who are vulnerable)
be accountable for implementing a way of working and culture that gives customer outcomes the same importance as revenue and profit when making decisions

Question 7

which of the FCA’s principles for businesses directly related to its consumer duty

Answer 7

12: a firm must act to deliver good outcomes for retail customers

Question 8

What type of financial services firm would be dual-regulated

Answer 8

a major UK insurer