Ethics And Professional Standards

Question 1

Which process is responsible for setting the overall approach to how a firm is structured and managed?

Answer 1

Governance

Question 2

According to a guide set by the regulator, good management information should be:

Answer 2

Accurate, timely, relevant and consistent

Question 3

Ethics is at the _________ of financial services legislation.

Answer 3

Heart

Question 4

Is there a FCA objective for ethics?

Answer 4

No, but all FCA rules and guidance relate back to over-arching principles founded on ethics

Question 5

What are the 4 key components to ethics culture?

Answer 5

Leadership - tone from the top

Practices - tell people how to be successful

Governance - firms organisation and have a this influences decision making

Purpose - what a firm wants to achieve and how this drives a firms decision making

Question 6

How can an ethical frame work be summarised?

Answer 6

Commitment - statements of values
Leadership - tone from the top
Operational - employee tool-kits
Oversight - monitor and review

Question 7

What are some tools which can be used to embed ethics into a firms culture?

Answer 7

Policies
Procedures
Training
Job descriptions
Human Resources
Communications
Performance management

Question 8

Examples of MI are:

Answer 8

Sales volumes
Policy lapses/ cancellations
Complaints
File reviews
Business mix

Question 9

What is a stakeholder?

Answer 9

A stakeholder is anyone who is affected by the business being carried out. This includes clients, employees and regulators

Question 10

How is in business the concept of ethics summarised?

Answer 10

The application of ethical values to a business decisions

Question 11

The values and behaviour of the board and senior management is sometimes referred to as:

Answer 11

Tone from the top

Question 12

A materiality assessment involves standing back from a firm and seeing it as how others might see it. What is a materiality assessment most closely associated?

Answer 12

Corporate social responsibility

Question 13

According to the regulator, good management information should display what a manager can directly influence or something that they can escalate to someone who can take the necessary action. Which of the regulators principles of good management information does this statement relates to?

Answer 13

Relevance