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R01 Jan 2020 > Exam Questions part 2 > Flashcards

Exam Questions part 2 Flashcards

1
Q

Tom is th chief risk officer for Phoenix bank, whilst Alistair holds the position of chair of the audit committee, Tom;

a) holds an oversight function, which Alistair holds an excecutive function
b) alone will be classed as a senior manager
c) and Alistair have controlled functions
d) olds an executive function, whilst Alistair holds an oversight function

A

d) olds an executive function, whilst Alistair holds an oversight function

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2
Q

Mo suffered a loss from an authorised firm which is unable to satisfy claims made against it. Mo is most likely to approach the:

a) FSCS
b) FOS
c) Financial services ombudsman
d) FCA

A

a) FSCS

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3
Q

A product provider must report persistency figures to the FCA each year. For new business, this information must be provide for the first:

a) five years
b) four years
c) two years
d) three years

A

b) four years

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4
Q

Buy now insurance is a firm of the The Buy Now Group. Whilst the AR within Buy Now are exempt from authorisation, Jack is not. Why is this?

a) Jack is the majority shareholder
b) Jack is the CEO
c) Jack is the principal
d) Jack provides advice on pension transfers

A

c) Jack is the principal

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5
Q

Under the SM&CR, if an investment adviser retires from this role, what action must the firm take?

a) notify the FCA within 14 days of becoming aware
b) notify the FCA as soon as they become aware
c) notify the FCA on an annual basis
d) notify the FCA on a six-monthly basis

A

c) notify the FCA on an annual basis

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6
Q

The SM&CR aims to strenghten market integrity by;

a) making individuals more accountable for their conduct and competence
b) enabling the FCA to monitor the number of people acting in ach controlled function
c) making firms more accountable for thier actions
d) increasing the number of people that have to be directly approved by the FCA

A

a) making individuals more accountable for their conduct and competence

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7
Q

Jones and Son LTD is an AR of Alpha life. What authorisation do James and son need from the FCA?

a) Part 4 A permission
b) Part 3I permission
c) None, it is Alpha life that is authorised
d) Alpha life would need to vary its permission to obtain authorisation for Jones and Son.

A

c) None, it is Alpha life that is authorised

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8
Q

Josh is an IFA with provided investment advice on 1st July 2019 ro a retail client. What is the earliest date that records of this could be destroyed under FCA rules?

a) 1 july 2024
b) 1 July 2023
c) 1 july 2025
d) 1 July 2022

A

a) 1 july 2024

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9
Q

In which of the following scenarios would the individual need to be authorised by the FCA?

a) Julia who is an accountant who provides tax advice to her clients on investments
b) Maggie who provides investment advice but not ‘by way of business’
c) James who is a solicitor who provides advice on inheritance tax planning and investments
d) martin who is an appointed representative

A

c) James who is a solicitor who provides advice on inheritance tax planning and investments

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10
Q

Sacha started working as an investment adviser on 1 July 2019. Under FCA T&C rules, by when must he have fully completed the appropriate qualifications?

a) 1 July 2020
b) 1 January 2022
c) 1 July 2023
d) 1 July 2021

A

c) 1 July 2023

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11
Q

Penny is an IFA. who applied for direct authorisaion to the FCA on 1 August 2019. Assuming her application was complete, the FCA must make a decision no later than;

a) 31 march 2020
b) 31 jan 2020
c) 1 December 2019
d) 31 July 2020

A

b) 31 jan 2020

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12
Q

Firm B provides advice mainly on ISA’s but also on unit trusts and investment bonds. Which type of authorisation would Firm B have applied for?

a) wholesale investment firm
b) insurance firm
c) retail intermediary
d) Provider firms and deposit takers

A

c) retail intermediary

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13
Q

Peter has been fined by the pensions regulator. If he had the maximum fine, he would have to pay an additional:

a) £6K
b) 46K
c) £11K
d) £1K

A

d) £1K

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14
Q

The renumeration code introduced 12 renumeration principles, these are most likely to apply to:

a) andrea who works for an insurance broker
b) Charlene who works for a peer to peer lender
c) Alex who works for an authorised mortgage broker
d) Ben who works for an authorised building society

A

d) Ben who works for an authorised building society

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15
Q

The bank of england is responsible for ensuring financial security in the UK. To acheive this, it is most likely to?

a) use surveillance and market intelligence to detect and reduce threats
b) refer to the FPC to manage interest rates
c) maintain stable prices by capping increases
d) create confidence in sterling

A

a) use surveillance and market intelligence to detect and reduce threats

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16
Q

Sheila who is age 60, began working at 16 and was employed in various roles for 28 years. During her working life she paid full NI. She has not received any NI credits when not employed. What state pension benefits would she be entilted to?

a) a proportionate amount of the New State Pension
b) a proportionate amount of the Basic state pension
c) the new state pension plus an additional state pension
d) the full amount of the new state pension

A

a) a proportionate amount of the New State Pension

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17
Q

with FCA supervision, if a forward looking approach is taken, the activity is most likely to be carried out under;

a) reactive firm supervision
b) thematic approach, issues and supervision
c) event driven reactive supervision
d) proactive firm supervision

A

d) proactive firm supervision

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18
Q 
When Lionel and Yvonne’s bank was declared insolvent in May 2019, Lionel had £60,000 on deposit and Yvonne had investments worth £60,000 with the bank. How much in total would they be entitled to receive under the Financial Services Compensation Scheme?
A. £100,000
 B. £108,000 
C. £110,000 
D. £120,000
A

D. £120,000

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19
Q 
David sent a letter of complaint to an authorised firm of independent financial advisers on 2 March, which was received on 4 March. The firm acknowledged receipt of the complaint on 7 March. On 1 April a holding response was sent to David to update him on progress of the complaint. What is the latest date on which the firm must provide David with its final decision and right to refer the complaint to the Financial Ombudsman Service?
A. 4 April.
B. 27 April.
C. 29 April.
D. 2 May
A

C. 29 April.

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20
Q 
A client referred his complaint about the investment advice received from his adviser to the Financial Ombudsman Service (FOS) in January 2019. The FOS has ruled that the advice was unsuitable and has recommended an award of £125,000 plus £2,500 costs. How much is the maximum amount of compensation that the adviser firm will be obliged to pay?
A. £100,000
  B. £102,500
 C. £125,000
 D. £127,500
A

D. £127,500

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21
Q

Jonas is an independent mortgage and financial adviser. He has NOT passed long-term care or equity release examinations to enable him to transact business in those areas. Which of the following transactions will Jonas be able to undertake?

i) A new term assurance with critical illness cover
ii) A remortgage for a 40-year-old applicant
iii) An immediate needs annuity
iv) A home reversion plan
v) A compulsory purchase annuity for a 65-year-old applicant

A. i and iionly.
B. i, ii and v only.
C. ii, iii and iv only.
D. iii and iv only

A

B. i, ii and v only.

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22
Q

During the course of the fact-finding process, a financial adviser decided to ask a number of
open-ended questions. The primary purpose of this approach was to
A. instill a sense of commitment from the client.
B. obtain the client’s views and opinions.
C. quantify the client’s assets and liabilities.
D. secure the client’s trust.

A

B. obtain the client’s views and opinions.

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23
Q

Susan and Nicola both have lump sums to invest and both intend to use life office managed funds. Why are the opportunities for Susan to benefit from diversification more limited than Nicola’s?
A. Susan has decided to adopt a socially responsible approach.
B. Nicola has less to invest than Susan.
C. Susan is significantly younger than Nicola.
D. Nicola is in significantly better health than Susan.

A

A. Susan has decided to adopt a socially responsible approach.

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24
Q

Following the completion of a fact-find, a financial adviser has recommended a unit trust and an investment bond to a retail client. In addition, the client has requested a personal pension be arranged on an execution-only basis. The disadvantages of which product(s) must be included within the suitability report?
A. Personal pension only.
B. Unit trust and investment bond only.
C. Personal pension and unit trust only.
D. Personal pension, unit trust and investment bond.

A

B. Unit trust and investment bond only.

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25
Q 
In considering a number of pension products, Jenny’s adviser has pointed out that the reduction in yield figures are important in helping her understand the
A. financial strength of the providers.
B. impact of charges.
C. impact of inflation on the fund.
D. volatility of investment performance.
A

B. impact of charges.

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26
Q

Ela has just completed a factfind with her financial adviser. In the meeting he paid particular attention to her history of smoking. What type of product recommendation would this be most relevant to?

a) a withdrawal from an existing investment bond
b) an additional contribution into an existing SIPP arrangement
c) an enhanced annuity at retirement
d) an ISA investment

A

c) an enhanced annuity at retirement

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27
Q

Archie, a potential client, is concerned about the impact a fall in the value of his investment might have on his standard of living. The adviser needs to ensure that he is comfortable with this. Discussing this with him, is known as establishing his;

a) investment objectives
b) investment profile
c) capacity for loss
d) attitude to risk

A

c) capacity for loss

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28
Q

Most clients will have give key planing priorities that they have recognised priority order related to the key life stages. The least important need in the early states of settling down and having a family is likely to be;

a) savings
b) income protection
c) investment
d) pensions

A

c) investment

29
Q

Whe conducting a fact find with a client, Debbie asked the client about her ethical preferences. This is most likely to be in relation to;

a) private medical insurance
b) life cover
c) pension planning
d) cash deposits

A

c) pension planning

30
Q

David and Amy have been recommended to take out a pure life assurance ploy to cover each others mortgage liability upon their deaths. What key areas should the adviser recommendation have taken into account?

a) any existing policies
b) how much David and Amy anticipate their property will be worth at the end of their mortgage
c) the current value of the mortgaged property
d) their attitude to risk

A

a) any existing policies

31
Q

Mr and Mrs Brown have a number of financial needs but cannot afford to satisfy them all. They ask you to advise them. What should you do?

a) ensure their life assurance needs are satisfied and then recommend solutions to satisfy their other needs to the extent they can afford?
b) Prioritise their needs in consultation with them and recommed solutions to satisfy those needs in order of priority
c) Prioritise their needs against criteria laid down by the FCA and present them with recommendations in order of priority
d) Ensure adequate protection of income is establoshed before recommending solutions to satisfy any other needs

A

b) Prioritise their needs in consultation with them and recommed solutions to satisfy those needs in order of priority

32
Q

Where waiver of premium is added to a protection policy, it:

a) is affected if the policyholder is in receipt of certain State Benefits
b) is paid after a specified deferred period which is usually two weeks
c) covers the cost of the premiums if the policyholder is unable to work due to illness
d) is included in the premium of most protection contracts

A

c) covers the cost of the premiums if the policyholder is unable to work due to illness

33
Q

When completing a factfind with a client, it is important to establish both hard and soft facts. an example of a soft fact would be the clients:

a) existing investments
b) pension scheme retirement age
c) disposable income
d) attitude to risk

A

d) attitude to risk

34
Q

Establishing soft facts is an important element of the fact finding process with a client. A question that would establish this type of information would be:

a) when did you start working for your current employer and what date did you join the company pension scheme
b) what would you like to do once you are retired and how do you see your standard of living changing?
c) how many children do you have, what are their names and dates of birth
d) what is your annual income and do you receive any taxable benefits such as a company car?

A

b) what would you like to do once you are retired and how do you see your standard of living changing?

35
Q

Julie has received investment advice and has been issued wiht a key investor information document (KID). what will this not cover?

a) Julies commitment to the investment
b) the impact on Julie’s tax position
c) the main risks
d) the aims of the investment

A

b) the impact on Julie’s tax position

36
Q

Julian, a financial adviser, has been praised for the quality of his recent professional conduct. This would most likely indicate that he has
A. achieved his annual sales target.
B. acted with appropriate integrity.
C. been influenced by colleagues.
D. maintained up-to-date continuing professional development records.

A

B. acted with appropriate integrity.

37
Q

How should an authorised firm react in the event of a conflict of interest arising from a couple’s divorce where both parties are clients of the firm?
A. By recommending an independent arbitrator.
B. By referring the couple to another authorised firm.
C. By seeking to maintain strict neutrality.
D. By supporting the client who provides most business.

A

C. By seeking to maintain strict neutrality.

38
Q

An investment provider has announced new charges for switching between its funds. If these charges are likely to be deemed excessive, this would
A. be regarded as a breach of the financial regulators ’Principles for Businesses.
B. lead to an investigation by the Competition and Markets Authority.
C. require the investment provider to reapply to the Financial Conduct Authority for relevant
permissions.
D. trigger the immediate imposition of a Prudential Regulation Authority approved default charging
structure.

A

A. be regarded as a breach of the financial regulators ’Principles for Businesses.

39
Q

In order to adhere to the Financial Prudence principle of the Financial Conduct Authority’s Principles for Businesses, an authorised firm should
A. ensure that its customers do not take on more debt than they can afford.
B. aim to increase its customers’ understanding of day-to-day money management.
C. have adequate financial resources to meet its obligations.
D. not market financial products with excessive investment risk.

A

C. have adequate financial resources to meet its obligations.

40
Q

To what degree, if any, must an authorised firm adhere to the Financial Conduct Authority’s Principles for Businesses?
A. They must adhere to them but they have discretion as to how they comply with their obligations.
B. They can ignore them provided they follow the rules within the relevant sourcebooks
C. They can elect to become exempt from them subject to holding prescribed levels of capital
resources.
D. They can elect to be exempt from them provided they are a member of a recognised trade
association.

A

A. They must adhere to them but they have discretion as to how they comply with their obligations.

41
Q

. The compliance officer of an authorised firm has discovered that one of the firm’s senior managers
has been declared bankrupt. What action must the authorised firm take?
A. Terminate the managers employment.
B. Ensure that all the manager’s future recommendations are checked by his supervisor.
C. Notify the Financial Conduct Authority in the firm’s next 6-monthly return.
D. Notify the Financial Conduct Authority immediately.

A

D. Notify the Financial Conduct Authority immediately.

42
Q

An individual has applied to an authorised firm for the role of compliance manager. In accordance with the Financial Conduct Authority’s (FCA’s) fit and proper requirements, how will she be treated as a result of a previous conviction for driving under the influence of alcohol seven years ago?
A. The individual will not be deemed fit and proper.
B. The FCA will only consider the issue if it relates to the ability to carry out her role.
C. The FCA will require a further period of three years to elapse before approving the application.
D. The individual will not be allowed to perform a senior management role.

A

B. The FCA will only consider the issue if it relates to the ability to carry out her role.

43
Q

Raffa has received advice, but a full factfind was not completed. What type of product is likely to have been recommended?

a) stakeholder pension
b) ISA
c) personal pension
d) income protection insurance

A

a) stakeholder pension

44
Q

In a trust established by Susan, John has a life interest and on his death, the property goes to Belinda. Using the legal terminology, Belinda holds the:

a) contingent interest
b) absolute interest
c) successive interest
d) reversionary interest

A

d) reversionary interest

45
Q

In order to confirm which regulated activities a firm pas permission to undertake, you would check:

a) The financial services directory
b) The FCA permissions register
c) The financial services register
d) The financial policy directory

A

c) The financial services register

46
Q

A general insurance firm has professional indemnity insurance cover of £500K for a single claim. By how much must this cover be increased to satisfy the Insurance Mediation Directive requirements?

a) £1,850,000
b) £750K
c) 1,250,000
d) £1,350,000

A

b) £750K

47
Q

In what circumstances will a UK authorised furm be subject to the Markets in Financial Instruments Directive (MiFID) requirements?

a) when the firm only provides advice to UK based clients
b) when the firm does not hold any client money
c) if the firm only provides advice on regulated products
d) if the firm provides advice to clients in other EEA countries

A

d) if the firm provides advice to clients in other EEA countries

48
Q

Under which circumstances would the customer receive the lowest level of protection under the ICOB sourcebook rules?

a) craig, buying payment protection insurance for himeld
b) Jade, buying building insurance for her home
c) Phil, buying personal accident insurance for himself
d) DVV LTD a medium sized business buying insurance for itself

A

d) DVV LTD a medium sized business buying insurance for itself

49
Q

Jack has recommended that Sally starts a personal pension plan contributing £250 per month. Sally has decided to proceed with the recommensation and has completed all the necessary application forms. When should Sally receive the suitability report?

a) before the contract has concluded
b) no later than the fourteenth day after the contract has concluded
c) upon completing the application forms
d) as soon as possible after the transaction is effected

A

b) no later than the fourteenth day after the contract has concluded

50
Q

Firm B provides advice mainly on ISA’s but also on unit trusts and investment bods. Which type of authorisation would Firm B have applied for?

a) provider firms and deposit takers
b) Insurance firm
c) wholesale investment firm
d) retail intermediary

A

d) retail intermediary

51
Q

Peter works in Gibraltar as a financial adviser of an authorised firm. mary works in the IOM, who is also a financial adviser. They should be aware that:

a) they are both subject to MiFID
b) only Mary is subject to IMD (insurance mediation directive)
c) only Mary is subject to MiFID
d) only Peter is subject to MiFID

A

d) only Peter is subject to MiFID

52
Q

William, an independent financial adviser, is advising Emily, a self-employed designer. Emily has an income protection insurance policy which has a maximum benefit level of £30,000 per annum, but her earnings have recently fallen to £25,000 per annum. Considering only the Financial Conduct Authority’s Statements of Principle and Code of Practice for Approved Persons (APER), what should William do, if anything?
A. Nothing as Emily’s earnings may improve in the future.
B. Inform Emily that she may be paying for cover on which she cannot claim.
C. Advise cancellation of the product and replace it with a cheaper one with a lower maximum
benefit.
D. Refer Emily to the product provider for guidance.

A

B. Inform Emily that she may be paying for cover on which she cannot claim.

53
Q

Considering only the Financial Conduct Authority’s Statements of Principle and Code of Practice for Approved Persons (APER), the issue of financial loss or financial detriment in the advice process applies to
A. clients only.
B. product providers only.
C. product providers and retail clients only.
D. all clients and product providers.

A

D. all clients and product providers.

54
Q

In reviewing its management information, an authorised firm has identified a high number of pure protection policies being cancelled immediately after the end of the commission earnings period. What kind of behaviour is this likely to indicate?
A. Unethical behaviour by advisers through churning of policies.
B. Unethical behaviour by advisers through over-committing customers’ budgets.
C. Non-compliant behaviour by sales staff made on a direct offer basis.
D. Non-compliant behaviour by sales staff made using the simplified advice process.

A

A. Unethical behaviour by advisers through churning of policies.

55
Q

According to the Financial Conduct Authority’s High Level Standards, an individual holding a senior managers role in an authorised firm must
A. be qualified to at least the same level as the adviser she supervises.
B. provide the same level of client service offering to all clients.
C. review all client files at least annually.
D. uphold the highest personal and professiona lstandards at all times.

A

D. uphold the highest personal and professiona lstandards at all times.

56
Q

How may an authorised firm demonstrate that they have successfully considered ethical outcomes?
A. High persistency levels.
B. An increase in execution-only business levels.
C. Low persistency levels.
D. Reducedclientreferrals.

A

A. High persistency levels.

57
Q

Barry and Caroline are restricted advisers and Paul is an independent financial adviser. In respect of their current authorisations, they should each be aware that
A. Barry can only advise on a single product.
B. Caroline can be tied to different providers for different products.
C. Barry and Caroline can both introduce clients to Paul.
D. only Caroline can receive commission from more than one provider.

A

B. Caroline can be tied to different providers for different products.
C. Barry and Caroline can both introduce clients to Paul.

58
Q 
Which roles within authorised firms would automatically be senior management functions?
A. Compliance manager.
B. Financial adviser.
C. IT manager.
D. Money Laundering Reporting Officer.
A

A. Compliance manager.

D. Money Laundering Reporting Officer.

59
Q

Simon has experience of dealing with retail clients and is now training to be able to give advice on pension transfers. As a consequence, Simon should be aware that
A. he must have at least 3 years’ experience as an adviser before his training can commence.
B. his firm is allowed to impose a time limit on completion of the qualification.
C. once qualified, CPD requirements are waived for 12 months.
D. all records of his training and CPD must be maintained indefinitely.

A

B. his firm is allowed to impose a time limit on completion of the qualification.
D. all records of his training and CPD must be maintained indefinitely.

60
Q

Which of the following constitute ‘close links’ for the purposes of Threshold Conditions (COND), where party X is seeking authorisation and Y is the other party?
A. Y is a parent undertaking of X.
B. X has a director in common with Y.
C. Y shares premises with X.
D. Y owns orc ontrols 20% or more of the voting rights or capital of X.

A

A. Y is a parent undertaking of X

D. Y owns orc ontrols 20% or more of the voting rights or capital of X.

61
Q

Several clients held long-term deposits and investment contracts with a UK bank that became insolvent and ceased trading due to insolvency in June 2019. Under the terms of the Financial Services Compensation Scheme (FSCS), which clients will be fully reimbursed by the FSCS to cover their losses?
A. James, who has £100,000 on deposit.
B. Moira, who has a stocks and shares ISA investment of £80,000.
C. Paolo and Kyla, who jointly hold £150,000 in their savings account.
D. Lola, who has an onshore investment bond with a surrender value of £60,000.

A

B. Moira, who has a stocks and shares ISA investment of £80,000.
C. Paolo and Kyla, who jointly hold £150,000 in their savings account
D. Lola, who has an onshore investment bond with a surrender value of £60,000.

62
Q

When considering the preparation of client suitability reports in accordance with the Financial Conduct Authority’s rules, a financial adviser should be aware that
A. suitability should be the consequence of proper adherence to the know your customer rule.
B. when arranging a regulated mortgage contract, a suitability report is not required.
C. suitability reports are always required for both pension transfers and friendly society policies.
D. suitability reports are required for increases to regular premium life assurance contracts, but not
for single premium contract top-ups.

A

A. suitability should be the consequence of proper adherence to the know your customer rule.
B. when arranging a regulated mortgage contract, a suitability report is not required.

63
Q

Firms X and Y are both authorised firms providing financial advice. Firm X is paid by commission only, firm Y is paid by fee only. When comparing their disclosure obligations to retail customers, the firms should be aware that
A. both firms must disclose details of what they can expect to receive.
B. both firms must confirm their regulatory status.
C. only firm X must give full disclosure of its regulatory status.
D. only firm Y must give full disclosure of loans and ownership.

A

A. both firms must disclose details of what they can expect to receive.
B. both firms must confirm their regulatory status.

64
Q

Fiona, a financial adviser, is reviewing her client’s circumstances. When looking into the client’s current assets, Fiona should be aware that
A. it is always acceptable to cancel and replace a life policy.
B. the amount of accessible funds held on deposit will impact on investment decisions.
C. opting out of an occupational pension scheme must never be recommended.
D. the consequences of any recommendation to surrender a long-term
contract must be explained.

A

B. the amount of accessible funds held on deposit will impact on investment decisions
D. the consequences of any recommendation to surrender a long-term
contract must be explained.

65
Q

An authorised firm transacts business with a new professional client on 1 February. In respect of the firm’s client agreement between the two parties
A. the firm must provide the agreement by 31January.
B. risk warnings need only be included where the client has elective professional status.
C. the agreement must include details of the firm’s complaints procedures.
D. the agreement must be retained indefinitely where pensions transfer business is conducted.

A

C. the agreement must include details of the firm’s complaints procedures.
D. the agreement must be retained indefinitely where pensions transfer business is conducted.

66
Q

When considering cancellation rights in respect of regulated products
A. notice can be served other than by post, so long as the provider has stated the alternative method is acceptable.
B. sending a notice one day before the deadline is acceptable even if it is not received until after the deadline.
C. investment shortfall deduction only applies to unit trusts and open-ended investment companies.
D. investment short fall deduction only applies to regular premium contracts.
E. the duration for which cancellation records must be retained varies according to the product
involved.

A

A. notice can be served other than by post, so long as the provider has stated the alternative method is acceptable.
B. sending a notice one day before the deadline is acceptable even if it is not received until after the deadline
E. the duration for which cancellation records must be retained varies according to the product

67
Q

A financial adviser is working in collaboration with a client’s accountant and solicitor in respect of the client’s divorce. In relation to the financial advice provided, the financial adviser should be aware that
A. the financial adviser cannot give generic information on matrimonial law.
B. the financial adviser can give generic information in relation to taxation issues.
C. all three parties share equal responsibility for the financial advice given.
D. the financial adviser is solely responsible for the financial advice given.
E. if the financial adviser instigated the referral to the solicitor, he may share the client’s details
without their prior consent.

A

B. the financial adviser can give generic information in relation to taxation issues
D. the financial adviser is solely responsible for the financial advice given.

68
Q

A financial adviser in an authorised firm is discussing areas of advice with a client for which he is
authorised but does NOT feel confident and lacks experience in this area. What should he do?
A. Suggest a joint meeting with another adviser within the firm who has greater experience.
B. Cease dealing with the client immediately and transfer him to another adviser within the firm.
C. Persuade the client that they do not need to consider the areas on which he is not experienced.
D. Rearrange the meeting to such time that he has researched the areas to

A

A. Suggest a joint meeting with another adviser within the firm who has greater experience
D. Rearrange the meeting to such time that he has researched the areas to

69
Q

When considering client categorisation according to the rules stated in the Conduct of Business Sourcebook, a financial adviser should be aware that
A. a professional client can choose to become an elective eligible counterparty.
B. a financial institution authorised in the US is an eligible counterparty.
C. all clients who are neither professional clients nor eligible counterparties are categorised as
retail clients.
D. a local authority is classed as an eligible counterparty.

A

A. a professional client can choose to become an elective eligible counterparty
C. all clients who are neither professional clients nor eligible counterparties are categorised as
retail clients.

R01 Jan 2020 (13 decks)

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