Chapter 3 Flashcards
Record Keeping: How long are MiFID business reports held for?
5 Years
Record Keeping: How long are non-MiFID business reports held for?
3 Years
Record Keeping: How long are Pension Transfer reports held for?
Indefinitely
Record Keeping: How long are Client Asset reports helf for?
5 Years
Record Keeping: How long are Life Policy and Pension Scheme reports held for?
5 years
Segregation of Client Money must be held where?
In an approved bank away from the firm.
Segregation of Client Money: Where is their interest paid to?
Paid to client money account, unless stated otherwise.
Client may want their interest to pay off any fees they may have.
Segregation of Client Money: Internal Reconciliation - How often must this occur (where the firm pays back any money taken out of the client money account)
Each Business Day
Segregation of Client Money: Records must be kept, how quick must the firm be able to determine how much each client has in cash?
Two Business Days
Different type of Reconciliations: Total Count
Total count of investments and reconciled same day
Different type of Reconciliations: Rolling Stock
Counting investments over a period - this can only be done with FCA approval.
Segregation of Client Money: Where is it held?
Must be held in a different account on CREST or with a nominee.
Suitability of Investment Rules: Who does it apply to?
MiFID:
Firms making recommendations on Designated Investment Business
Firms managing Designated Investment Business
Non MiFID:
if the client is a Retail Client
The firm is managing occupation pension scheme, shareholder pension scheme or personal pension scheme.
Third Party Research must be paid out of a…what?
Separate account from the firm.
Third Party Research must not be an…what?
Inducement
