FCA Handbook Flashcards
What does Block 1 of the handbook cover?
High level standards - the standards applying to all firms and approved persons.
What is a fee block?
Similar grouped firms are placed in these and reflect the risk they pose to the FCA.
It is common to be in more than one few block if numerous activities are carried out.
What are the 3 FCA fees?
Think: S.A.P
1) application fees - new firms start at £1,500 for basic applications and rise significantly for complex authorisations. Any form wishing to vary their authorisation and in doing so falls into a new fee block is charged a fee which is 50% of the equivalent application fee.
2) periodic fees - these are paid annually and cover day to day FCA costs. Each fee block has a tariff base. Periodic fees are calculated: firms tariff base x fee block rates.
3) special project fees - meets the costs that the FCA incurs when dealing with special requests from fee paying individuals, firms and markets
What does Block 2 of the handbook cover?
Prudential standards for firms.
What does GENPRU cover?
GENPRU1 - Rules of adequacy and valuation
GENPRU2.1 - Capital Resources Requirement
GENPRU2.2 - Types of Eligible Capital
What is capital adequacy?
Businesses must meet their financial obligations as and when they fall due.
What must BIPRU and IPRU smaller firms fulfil?
Capital resource requirements of at least 25% of their fixed overheads as capital reserves.
What does Block 3 of the handbook cover?
Business standards and areas of conducts.
What is COBS?
Conduct of business sourcebook - sets out detailed guidance of how businesses should deal with their customers. They apply to deposit taking firms and regulated life, pension and investment companies.
What is the retail distribution review?
It makes it clear that payments to firms and advisors can only be to the intermediary giving advice unless another firm has been involved or the investment is a packaged product.
What does ICOBS cover?
General insurance, protection and PPI.
This was regulated in 2005.
No suitability report is required.
What are the two sets of mortgage reforms?
Mortgage market review - 26th April 2014 - affordability in relation to mortgages must be assessed in all cases.
Mortgage credit directive - 21st March 2016 - all mortgage sellers and advisers must hold a level 3 qualification.
What does Block 4 of the handbook cover?
Regulatory processes and disciplinary processes
What does Block 5 of the handbook cover?
Redress and handling complaints
What is the consumer credit act?
It affects anyone who provided any form of credit to individuals or companies involving credit of not more than £25,000.
