Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

IF1 2022 > Chapter 10 part 3 > Flashcards

Chapter 10 part 3 Flashcards

1
Q

What does SMR stand for?

A

Senior Manager Regime

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Who does the SMR apply to?

A

applies to persons performing the most senior roles in a firm – ‘senior managers’.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What does SMFs stand for?

A

senior management functions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Who makes the senior management functions rules?

A

FCA and PRA

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Any firms planning a new senior manager appointment, or a material change in role for currently approved individuals, must do what?

A

Prepare and submit an application to the regulators for approval.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

The SMR has a broade scope of new roles which includes?

A

• Head of key business area

• Group entity senior managers

• Significant responsibility function – senior executives

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

The SMFs are prescribed by the PRA and the FCA, and for each regulatory body are split into what two catagories?

A

Executive
Non-Executive

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What does SoR stand for?

A

Statement of Responsibility

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Who should a Statement of Responsibilities (SoR) be prepared for?

A

each senior manager

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What should an SoR include?

A

appropriate Prescribed Responsibilities as set out by the FCA

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What should an SoR be complimented by?

A

the individual’s CV,
personal development plan,
job description,
organisation chart showing reporting lines and
the firm’s responsibilities map

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What should the responsibilities map set out?

A

the firm’s management and governance arrangements,
including reporting lines and responsibilities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What does CR stand for?

A

Certification Regime

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Who does the CR apply to?

A

individuals who are not carrying out SMFs, but whose roles have been deemed capable of causing significant harm to the firm or its
customers by the regulators.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

How often does a firm need to formallyy certify a CR?

A

At least annually

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

These ‘significant harm function’ roles are also specified by the regulators - are the subject to prior regulatory approval?

A

NO

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Who is responsible for the Certification Regime within a firm?

A

An allocated senior manager

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Is a SMR apllicable to roles overseas?

A

Yes when they have an impact of the firms UK Strategy

19
Q

Are CRs applicable to overseas?

A

CR generally only applies to UK-based employees (with the exception of those categorised
as ‘material risk takers’ or those dealing with UK clients).

20
Q

There are two tiers of Conduct Rules - what are they?

A
  1. Individual Conduct Rules – rules which apply to most employees within a firm.
  2. Senior Manager Conduct Rules – rules which only apply to SMs.
21
Q

What does FIT stand for?

A

The Fit and Proper test

22
Q

An individual in senior management or a certified position under SM&CR must be (and remain) ‘fit and proper’ for their function. This means that they must be tested with regard to their what?

A

• honesty, integrity and reputation;

• competence and capability; and

• financial soundness

23
Q

Who is the onus on to determine whether an individual is fit and proper for the role?

A

The firm

24
Q

What will a firm to do determine if someone is fit and proper?

A

credit checks
references for the last 6 years

while the regulator also carries out its own monitoring in these areas.

25
Q

There is a requirement for firms to assess relevant employees when?

A

at the point where their application is prepared for submission,

and for there an annual re-certification process in place.

26
Q

What does PIDA stand for?

A

Public Interest Disclosure Act 1998

27
Q

What does Public Interest Disclosure Act 1998 concern?

A

Whistle blowing

28
Q

What is Whistle Blowing?

A

the public allegation of a firm’s concealed misconduct, usually from within the same organisation

29
Q

One or more of the following has been, is being, or is likely to be committed:
• A criminal offence.
• A failure to comply with any legal obligation.
• A miscarriage of justice.
• The putting of the health and safety of any individual in danger.
• Damage to the environment.
• Deliberate concealment relating to any of the above.

creates what?

A

A qualifying disclosure

30
Q

Who does PIDA protect?

A

s those who make such a disclosure to their employer, provided it is made in good faith

31
Q

In General Terms what disciplinary measures available to the FCA and PRA?

A

financial penalties,

public censure

and public statements

32
Q

What is Public Censure?

A

A public statement of misconduct on an approved person

33
Q

Why would public censure be an effective punishment?

A

Public censure would draw the public’s attention to the firm’s or approved person’s misconduct, damaging their reputation. This could hinder the future success of the firm or individual.

34
Q

Recent examples in the insurance sector include a fine of £29.1m against The Carphone Warehouse (March 2019) for mis-selling mobile phone insurance, and a fine of just under £5.3m against Liberty Mutual Insurance Europe SE for issues relating to complaints
handling, culture and governance, and the unfair treatment of customers (October 2018).

What type of punishment are these an example of?

A

Financial penalties

35
Q

Does the FCA have the power to bring criminal proceedings against individuals in England, Wales and Northern Ireland?

A

yes

36
Q

What offences could cause the FCA to bring criminal proceedings against an individual in England, Wales and Northern Ireland?

A

• carrying on a regulated activity without authorisation;

• failing to cooperate with, or giving false information to, the regulator’s appointed investigators;

• failing to comply with provisions about control over authorised persons;

• providing false or misleading information to an auditor; and

• misleading the regulator.

37
Q

Can the FCA take take civil or regulatory action?

A

yes - such as:

• injunctions;
• restitution;
• withdrawal or variance of approval;
• cancellation of permission;
• withdrawal of authorisation; and/or
• prohibition of individuals from carrying out functions in connection with regulated
activities

38
Q

Is a caution by the FCA published?

A

NO

39
Q

Any UK-domiciled company wishing to transact insurance in the EU must be authorised to
do so by who?

A

PRA

40
Q

Any UK-domiciled company wishing to transact insurance in the EU must be authorised to do so by the PRA. To gain this authorisation, the PRA must be satisfied by what?

A

that the company complies with its requirements.

41
Q

When a UK-based insurance company decides that it wishes to transact insurance, it has to
complete and submit detailed forms to who?

A

PRA

42
Q

What does ICOBS stand for?

A

The Insurance: Conduct of Business Sourcebook

43
Q

What does MoU stand for?

A

Memorandum of Understanding

IF1 2022 (19 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions