Chapter 2 (FSMA 2000 & FSA 2012) Flashcards
Who authorises market makers in the wholesale money markets in the UK?
FCA
List the 4 main excluded regulated investments
Property, tangible assets (oils, metals etc.), currencies (spot and forward), premium bonds and notional savings certificates
If an advisor carries on regulated activities without having sought Part 4A permission from the FCA, what is the effect on any contract with a client?
it is voidable at discretion of client
Under the product intervention rules for how long can products be banned by the FCA without consultation with the product provider?
12 months
If the FCA is asked to pursue ‘redress’ it will:
FCA could seek a restitution order or require an investor to contact the FSCS/FOS.
What is the maximum penalty for those operating an unauthorised firm carrying out regulated activities in the UK as stated in the Financial Services Markets Act 2000?
Two years imprisonment and an unlimited fine
When the UK regulator allows a firm to undertake regulated activities, it grants what?
Part 4A Permission
Who is the Tax and Chancery Chamber of the Upper Tribunal set up by?
The Ministry of Justice
What is the best description of a warning notice?
Sent when the FCA believes that there is sufficient evidence to suggest wrongdoing has taken place and it intends to discipline
What is the maximum number of employees permitted to work in an authorised firm’s compliance department?
No maximum
S71 of the Financial Services and Markets Act 2000 allows private persons to claim damages for losses caused by who?
An authorised firm
If an applicant for approved person status has a criminal history covered by the Rehabilitation of Offenders Act 1974 what describes the right of the FCA to take this into account?
It might be taken into account if relevant (no time limit on this)
What is a multilateral trading facility (MTF)?
A system that brings together multiple parties that are interested in buying and selling financial instruments and which allows them to do so
