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CII LM1 > Chapter 7 - Regulatory Processes, Systems, and Controls > Flashcards

Chapter 7 - Regulatory Processes, Systems, and Controls Flashcards

1
Q

How do Lloyd’s members find out about information regarding regulations?

A
  • centralised department in Lloyds that disseminate information
  • LMA, IUA and LIIBA also send info
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2
Q

What kind of data would be recorded for regulatory purposes by coding?

A
  • location of broker
  • location of risk
  • any premium tax or other tax payable
  • whether direct or reinsured business
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3
Q

What do the Solvency II requirements ensure?

A

Ensures extent to which assets exceed liabilities in case of a large number of claims

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4
Q

What did Solvency II improve?

A
  • better regulation
  • deeper integration of EU insurance market
  • enhanced policy holder protection
  • improved competitiveness in EU markets
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5
Q

What systems and controls can be put in place to assist regulation?

A
  • training and education
  • easily accessible information for staff to check
  • operating system controls, warnings, and blocks
  • peer review
  • system reports to spot problems after thefact
  • authority limits
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6
Q

Why are sanctions imposed fundamentally?

A
  • political pressure
  • enforce concept of respect for democracy
  • enforce concept of respect for human rights
  • maintain or restore peace to a country
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7
Q

What form can financial sanctions come in?

A
  • prohibiting the transfer of funds to sanctioned country
  • freeze assets of company or individual
  • freeze assets of whole government
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8
Q

What is the Office of Financial Sanctions Implementation (OFSI) responsible for?

A

implementing and admin of international financial sanctions for the UK

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9
Q

What is the Helms-Burton Act 1996?

A

Restricts conduct of business by US entities with or in Cuba

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10
Q

Which system on Lloyds can insurers find out about sanctions on?

A

Crystal

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11
Q

What does the Export Control Order contain?

A

Insurers must get license for insuring category A (guillotines, electric chairs)

Only require license for category B (rocket launchers) or C (tear gas / other military goods) if insurance being obtained for travel to embargoes country

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12
Q

What are the main elements of the Data Protection Act 2018 in general data processing?

A
  • implement gdpr across all data processing
  • provide clarity on definitions used in gdpr in UK context
  • ensure private data processed confidentially
  • provide appropriate restrictions and rights about access
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13
Q

What are the main elements of the Data Protection Act 2018 in regulation and enforcement?

A
  • enact additional powers to IC

- allow IC to levy huge fines of data breaches, up to £17m or 4% of global turnover

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14
Q

Under DPA 2018 what is the controller and processor?

A

Controller says how and why personal data is processed and processor acts on controllers behalf

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15
Q

What does GDPR apply to?

A

Personal data

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16
Q

What does GDPR class as personal data?

A
  • race
  • ethnic origin
  • politics
  • trade union membership
  • genetics
  • biometrics
  • health
  • sex life
  • sexual orientation
17
Q

What are the main elements of the Data Protection Act 2018 in terms of rights?

A
  • right to be informed
  • right of access
  • right to ratification
  • right to erasure
  • right to restrict processing
  • right to data portability
  • right to object
18
Q

How long does a company have to respond to a data subject access request, and how much does it cost?

A

One month but additional two granted dependant on circumstances

Should be free unless company deems unfounded or excessive, can charge admin fee if so

19
Q

What are the three layers of money laundering?

A
  • placement
  • layering
  • integration
20
Q

What does the Proceeds of Crime Act 2002 establish for money laundering?

A
  • concealing, transferring, converting or removing criminal property
  • making arrangements in respect of criminal property
  • acquiring, using, or possessing criminal property
  • failing to report suspected money laundering
  • tipping criminals off about money laundering disclosure
21
Q

Who does the Money Laundering, Terrorist Financing, and Transfer of Funds Regulations 2007 effect?

A
  • credit and financial institutions
  • auditors
  • lawyers
  • trust or company service providers
  • estate agents
22
Q

What regulations does the Money Laundering, Terrorist Financing, and Transfer of Funds Regulations 2007 put into place?

A
  • conduct moeny laundering and terrorist financing risk assessments
  • apply policies and procedures across business
  • train staff
  • comply with new customer due diligence
  • ensure record keeping and data protection systems
23
Q

Define financial crime

A

fraud, dishonesty, misconduct, or misuse of information relating to financial markets, handling the proceeds of crime, or terrorism

24
Q

What does the Money Laundering Reporting Officer do?

A

Make a report at least annually on how the systems and controls operate and on their effectiveness

  • responsibility for compliance with FCA rules regrading money laundering
  • expected to be UK based
  • required to have certain level of authority and independence within the firm
25
Q

What does the nominated officer do?

A

Take overall responsibility for establishing and maintaining effective anti-money laundering systems and controls within the firm

26
Q

What are the major offences under the Bribery Act 2010?

A
  • bribing another
  • being bribed
  • bribing a foreign public official
  • failure to prevent bribery

CII LM1 (7 decks)

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