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CISI: UK Regulation > Fitch: Incorrect Answers > Flashcards

Fitch: Incorrect Answers Flashcards

1
Q

Is acting as principal and end user when dealing in shares a specified activity?

A

No

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2
Q

S71 of the Financial Services and Markets Act 2000 allows private persons to claim damages for losses caused by who?

A

An authorised firm

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3
Q

Personal responsibility for senior manager functions is enforced by?

A

A set of Conduct Rules backed by a duty of responsibility

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4
Q

What is the nuance with the Senior Managment Function conduct rules?

how many are there?

A

10

4 more than other persons

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5
Q

Which of the following notices can be published in accordance with disciplinary process and measures without the consent of the receiving party?
I Notice of discontinuance
II Decision notice
III Final decision notice
IV Final supervisory notice

A

2 and 4

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6
Q

What cant the FCA and the PRA do when investigating a firm?

A

Remove any documents from the firm’s business premises

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7
Q

What is a decision notice, what are the rules about these?

A

A decision notice must be in writing, it may be issued to individuals or firms. On receiving a decision notice, the recipient has 28 days to appeal to the Tax and Chancery Chamber of the Upper Tribunal (formerly known as the FSMT), and therefore a decision notice does not set a time limit which would be affected by the timing of any appeal. The RDC does not need court approval to issue notices.

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8
Q

Which of the following is MOST LIKELY to be a certified function?
* A - Head of internal audit
* B - Head of financial reporting
* C - Money laundering reporting officer
* D - Financial planner

A

D - Financial planner

A financial planner is a significant harm function, as if they fail to perform their job correctly this causes conduct risk for the consumer using their services

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9
Q

Which of the following would not be exempt from requiring authorisation?
A - Recognised investment exchange
B - Appointed representative
C - Lloyd’s of London
D - Members of certain professions

Why?

A

C - Lloyds of london members

Because its only Lloyds of london syndicate members that are exempt

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10
Q

Which of the following would not be considered acts of misconduct by a firm in the financial industry?
A - A breach of the Financial Services and Markets Act
B - A breach of a Principle for Businesses
C - Failure to comply with instructions from an FCA inspector
D - Not immediately producing adequate information for an FCA inspection

Why?

A

D - Not immediately producing adequate information for an FCA inspection

Firms are usually given 48 hours to respond, so immeidatley is unesseccary

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11
Q

What could be a reason for the FCA to not publish a final notice?

A

Publishing so would cause detriment to consumers

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12
Q

If an authorised firm is unhappy with the results of an FCA investigation, they may go to the Tax and Chancery Chamber of the Upper Tribunal under which of the following notices?
A - Supervisory notice and warning notice
B - Warning notice and decision notice
C- Decision notice only
D - Supervisory notice and decision notice

A

D - Supervisory notice and decision notice

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13
Q

According to the JMLSG’s guidance notes, for what length of time should client verification records be kept?

A

Five years from the date the account was closed

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14
Q

Which conduct rules applies to all persons captured by the SM&CR regime?

A

Observe proper standards of market conduct

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15
Q

Which of the following best represents the FCA view on industry guidance?
A - It is considered mandatory and a breach would result in disciplinary action
B - It is designed to plug gaps in the regulatory regime
C - Industry bodies are expected to monitor compliance
D - The FCA will not monitor or enforce compliance

A

The FCA will not monitor or enforce compliance

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16
Q

Can a third party appeal to the Tribunal on behalf of an authorised firm against a decision notice?

A

Yes, if the appeal is made within 28 days of the notice being issued

17
Q

A fund manager is providing a discretionary management service to their clients. Halfway through their normal reporting period, the manager makes a large investment for the fund. When do they have to notify the client of the details of this purchase?

A

In the periodic statement

Doesnt need to be trade by trade

18
Q

What is the Bribery Act 2010?

A

Under the Bribery Act 2010, it is an offence to request, agree to receive, or accept any financial or other advantage with the intent that it leads to improper performance of a relevant function or activity, whether by yourself or someone else. This also applies if the advantage is accepted as a reward for improper performance. It is irrelevant whether you or the other person involved know or believe the performance to be improper.

19
Q

According to COBS, a firm must take reasonable steps to manage any conflicts of interest with respect to independent research in which of the following cases?
A - Market-making in good faith
B - Executing an unsolicited client order
C - Where there has been a reasonable opportunity for clients to act upon the research
D - The firm is making a recommendation to a client

A

The firm is making a recommendation to a client

20
Q

Does an authorised firm with respect to general insurance, have rights under the FSCS?

A

No

21
Q

If an authorised firm is conducting unauthorised regulated activities, this will be considered what?

A

A criminal matter

22
Q

What is the difference between a “statement of misconduct” and a “public censure”

A

Statement of Misconduct: This is an acknowledgment or documentation of wrongdoing, often part of an internal or official report. It outlines the nature of the misconduct but may not necessarily involve public disclosure or additional disciplinary action.
Public Censure: This is a formal reprimand issued publicly to express disapproval of someone’s behavior. It is often intended to serve as both a disciplinary measure and a deterrent to others, typically involving public announcements or records.

23
Q

Can an individual make or receive comms on a personal device?

Ecomms

A

No

24
Q

Under UK MAR where a person has reasonable suspicion regarding an order or a transaction in a financial instrument when placed on any trading venue, they should notify the FCA when?

A

once a full investigation has been completed to assess the nature of the event

25
Q

Who do the product disclose rules apply to?

A

Retail clients

26
Q

According to the Money Laundering Regulations, how long must a firm keep records?

A

5 years

27
Q

For COBS 4 does not apply where Prospectus Rule 3.3 applies, does an advertisement need to be consistent with the prospectus?

A

yes, absolutley

28
Q

Are eligible complainants typically small retail customers?

A

Yes

29
Q

Under the European Markets Infrastructure Regulation, which of the following is not a requirement on those that trade derivatives?

A

To ensure the orderly functioning of markets

30
Q

To whom is the PRA directly accountable?

A

The BoE

31
Q

Are recommendations in relation to small life policies from a friendly society excluded from the requirement to provide a suitability report?

A

Yes

32
Q

In which of the following circumstances may an unauthorised firm make a financial promotion?

A

Is permitted to make a financial promotion only if the content and inducement have been approved by an authorised person

33
Q

Under the Proceeds of Crime Act if you made an illegal disclosure in respect of an investigation into money laundering, you would be guilty of which of the following offences?

A

Tipping-off

CISI: UK Regulation (6 decks)

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