Brainscape's Knowledge GenomeTM

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


See full index

Investment Environment > Conduct of business and client asset rules > Flashcards

Conduct of business and client asset rules Flashcards

1
Q

COBS is in which block f the FCA handbook

A

Block 3

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

COBS is for what type of business

A

designated investment business + long-term insurance business in relation to home finance + accepting deposits

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

what is the clients best interest rule under COBS

A

acting honestly, fairly and professionally

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

what can a retail client be elected to

A

electIve proffessional client

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

subtypes of PER SE professional clients

A

authorised/regulated firms + government + central bank + supranational + large undertaking + other institutional investors

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

PER SE eligible counterparties

A

authorised/regulated firms + government + central bank + supranational

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

Elective eligible counterparties

A

large undertaking

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

clients include :

A

retail client, professional client, eligible counterparty

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

customers are:

A

retail client and professional client

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

large undertaking can be a …. and/or …..

A

mifid business + non-mifid business

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

a large undertaking conducting mifid business need to :

A

balance sheet of 20mill euro + net turnover of 40mill euro + own funds 2mill euro

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

a large undertaking conducting non-mifid business need to :

A

balance sheet of 12.5mill euro + net turnoover of 25mill euro + avg number of employees 250

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

RC to be elected to PC must do….

A

qualitative + quantitave test if mifid and qualitative if non-mifid business

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

quantitative test fir mifid business involves meeting 2/3 points

A

average trade frequency of 10 per quarter over previous four quarters + portfolio >500kEURO + worked in sector >= 1yr

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

eligible counterparty business

A

dealing on own account ,executing behalf of client , transmitting orders behalf of clients

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

what does S21 FSMA 2000 state

A

financial promotions cannot be communicated unless the content is approved by an authorised person or the communication is exempt under financial promotions order

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

what does FPO S21 FSMA 2000 state

A

communications are exempt if related to controlled activities, deposits, insurance and specific controlled activities

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

breach of S21 FSMA 2000 (FINANCIAL PROMOTION RESTRICTION)

A

penalty of two years and/or unlimited fine

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

COBS: General rule, territorial scope and types of communication

A

general rule: fair, clear and not misleading commnuication
territorial scope: rule to communications do not apply outside UK
types of communication: written and non-written

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

when commnucating with clients past performance should … amongst other things

A

cover at least five years

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

dirrect offer protomotions must contain relevant info

A

all designated investment business, non-mifid, additional info supporting the risk

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

permitted cold calls

A

existing client saying ok, retail clients where promotions relates to packaged products and/or services for readily realisable securities NOT warrants

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

packaged products are

A

life policy, regulated CIS, investment trust savings scheme, stakeholder pension, personal pension

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Product governance requirements under MiFID II

A

target market analysis, stress testing scenario analysis, information sharing and disclosure, proportionality

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Product governance requirements and SYSC ensure

A

high standards of corporate governance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

key information documents (KIDs) for PRIIP

A

retail clients and a max of 3 A4 sides

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

UCITS IV provide to retail clients

A

key investor information document

28
Q

KFD and KFI for (PENSION PRODUCTS , CASH ISAS)

A

non-PRIIP

29
Q

post-sale cancellation period for life products and pensions or other products DEPOSITS + DESIGNATED INVESTMENTS

A

30 calendar days, 14 calaendar days

30
Q

inducements for mifid business

A

can accept if enhances quality of business and it is for the clients best interest

31
Q

inducements for non-mid business

A

disclosures only for personal recommendations for packaged products
disclosure not required if small monetary benefit
dsclosure not required for stakeholder product

32
Q

inducements and 3rd party research

A

mifid 2

33
Q

client agreements required for

A

retail clients (mifid + non-mifid business) + proffessional clients (mifid)

34
Q

suitability for advised services (personal recommendation) and discretionary mgmt services for

A

retail clients, professional clients (mifid)

35
Q

fact find aids in understanding clients investment objectives

A

retail client + professional client

36
Q

fact find aids in understanding clients ability to bear risk

A

retail client + elective professional client

37
Q

fact find aids in understainding if client has the right knowledge

A

retail client

38
Q

appropriateness for non-advised services i.e. execution business applies to

A

retail client (mifid) + professional client (mifid) + direct offers to retail client

39
Q

appropriateness not necessary for

A

non-complex financial instruments

40
Q

non-complex financial instruments:

A

shares or bonds, money mrkt instruments and units in UCITS scheme

41
Q

SYSC 10 requires

A

written conflict of interest policy

42
Q

conflict of interest applies to

A

all clients

43
Q

best execution policy + order execution policy

A

all customers

44
Q

OEP prescribed info for retail clients

A

execution venues, factors affecting choice of venue, warning that instruction from client can prevent best execution

45
Q

OEP written agreement review annualy for

A

retail and professional clients

46
Q

client order handling for

A

retail and professional clients

47
Q

aggregation and allocation for

A

retail and professional clients

48
Q

dealing and managing for

A

retail, professional and eligible clients

49
Q

occasional reporting for

A

retail and professional client

50
Q

occasional reporting for non-mifid business

A

life policy or personal pension annual valuations

51
Q

periodic statements for

A

RC + PC

52
Q

purpose of CASS

A

restrict comingling of firms and clients assets + minimise risk of client assets being used without their consent

53
Q

CASS reconciliation for assets not held by the firm and assets held by the firm

A

monthly, six monthly

54
Q

CASS 8

A

where a firm is given a payment mandate in relation to designated investm business, insurance mediation or debt management activities

55
Q

record keeping

A

non-mifid 3 yrs, mifid 5 yrs, life policy or pension 5 yrs if FPO 6yrs, pension transfers optouts contributions indefinetly, CASS 6 + 7 5yrs

56
Q

retail client periodic statment every

A

3mnths. In the case of the simplest portfolios, the client can get the statement annually, but this is only if information about transactions is given on a transaction by transaction basis..

57
Q

record: determine total amount it is to hold for each client

A

two business days

58
Q

suitability for non-mifid applies to

A

only retail clients and the if firm is managing assets in occupational pension scheme, stakeholder pension scheme or personal pension scheme

59
Q

OEP reviewed

A

annually

60
Q

medium and large firms must appoint

A

senior maanage for CASS oversight

61
Q

designated investment business excludes

A

mortgages, home finance, general insurance or protection products

62
Q

client agreement not required for

A

life policies

63
Q

churning and switching

A
  • overtrading in securities
  • overtrading in packaged products
64
Q

CASS firm: large, medium, small

A

cash and assets
large: > 1bill, > 100bill
medium: 1mill-1bill, 10mill-100bill
small: <1mill, <10mill

65
Q

Non written financial promotion

A

Must be communicated by a authorised person

66
Q

Readily realisable securities

A

A gvmnt or public security
Security listed and regularly traded on an EEA exchange or RIE

67
Q

Suitability reports not required for

A

Regulated CIS where firm is investment manager
Client outside of EEA

Investment Environment (10 decks)

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