Chapter 9 Flashcards
Under money laundering regulations, for what period of time must records of client verification be kept?
5 Years
In relation to capital adequacy, the PRA requires qualitative reports to be submitted:
Annually
With regard to the consequences of the Deregulation Act 2015 what statement is false
Insurance certificates no longer need to be delivered to policyholders.
What penalties can be imposed on directors who are personally responsible for failure to comply with the Money Laundering Regulations 2017?
Imprisonment for up to 2 years.
The concept of ‘privity of contract’ means that:
a person can only enforce a contract if they are party to it.
Which body is currently responsible for recovering the proceeds of criminal activity?
The National Crime Agency [NCA].
The ultimate power of the PRA where an insurance company fails to meet its regulatory requirements is to:
wind up the insurance company.
Which body is responsible for regulating market issues for insurers?
The FCA.
Public liability insurance for riding establishments will cover each of the following, with the exception of?
The insured, against a downturn in custom due to particularly cold winter.
In respect of commission disclosure to a commercial customer, an intermediary:
must disclose the commission received if a commercial customer requests it.
Insurance intermediaries authorised by the FCA must have:
professional indemnity insurance.
Under money laundering regulations, proof of identity should be obtained:
before any transactions are complete.
In the event of a regulatory failure due to the FCA’s actions, the FCA is required to make a report to the:
Treasury
The minimum required limit of indemnity under compulsory employers’ liability insurance currently stands at?
£5m
How is public liability insurance made compulsory as a result of the Dangerous Dogs Act 1991?
Dangerous dogs must be licensed by the local authority, which must be satisfied as to the adequacy of insurance.
Which of the following statements regarding the evidence firms must record in relation to the fair treatment of customers is false?
It must be structured around the six positive consumer outcomes.
The intensity of regulation by the PRA will depend on a firm’s:
riskiness
Under the guidelines issued by the Joint Money Laundering Steering Group [JMLSG], which of the following documents is acceptable for client verification purposes?
A firearms certificate.
Of the four criminal offences under the Bribery Act 2010, which has been the main cause for concern?
Failure by a commercial organisation to prevent bribery.
In relation to capital adequacy, the PRA requires qualitative reports to be submitted:
annually
Brown and Green is a large firm of solicitors which employs 15 staff. It operates from city centre premises and provides all of the partners with company cars so that they can visit clients in their homes. Which of the following types of insurance is it NOT compulsory for Brown and Green to have by law?
Public liability.
Which section of the FCA’s Handbook contains rules that must be met with regard to close links with other organisations?
Threshold conditions.
The requirement for insurance certificates to be displayed by the insured at each place of business was amended by the Employers’ Liability [Compulsory Insurance] [Amendment] Regulations 2008. In respect of this, which of the following statements is correct?
An electronic copy of the certificate must be reasonably accessible to all employees.
