Ethics, principles and objectives

Question 1

FCA statutory objectives

Answer 1

• Consumer protection
• Integrity of UK financial system
• Promoting effective competition

Question 2

FCA handbook: seven main blocks

Answer 2

• High Level standards
• Prudential Standards
• Business standards
• Regulatory process
• Redress
• Specialist sourcebooks
• Listing, prospectus and disclosure

Question 3

11 Principles of Business

Answer 3

• Integrity
• Skill care and diligence
• Management and control
• Financial prudence
• Market conduct
• Customers’ interest
• Communication with clients
• Conflicts of interest
• Customers: relationships of trust
• Clients’ assets
• Relations with regulators

Question 4

FCA Recognised Industry Codes (4)

Answer 4

• FX Global Code
• UK Money Markets Code
• Standards of Lending Practice for Business customers
• Global Precious Metals Market code

Question 5

CFA Standards of Professional Conduct

Answer 5

• Professionalism
• Integrity of capital markets
• Duties to clients
• Duties to employers
• Investment analysis, recommendations and actions
• Conflicts of interest
• Responsibilities as a CFA Institute Member or CFA Program Candidate

Question 6

UK Code of Corporate Governance

Answer 6

• Board Leadership and Company Purpose
• Division of responsibilities
• Composition, succession and evaluation
• Audi, risk and internal control
• Remuneration
• Board diversity

Question 7

Stewardship Code 4 main sections

Answer 7

 Purpose and governance
 Investment approach
 Engagement
 Exercising rights and responsibilities