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CISI: UK Regulation > Incorrect Answers: CISI > Flashcards

Incorrect Answers: CISI Flashcards

1
Q

Where a trade is undertaken on the LSE, who is normally responsible for satisfying the trade reporting obligations?

Chapter 3.8.3

A

The more senior party to the transaction

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2
Q

According to section 5 of the Bribery Act, if a UK resident has accepted a bribe while working in a foreign country which has no written laws concerning bribery, what is the situation?

Chapter 3.5.2

A

The issue will be decided according to UK law only

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3
Q

Under the DPA, what is the maximum period that data can be held for?

Chapter 3.9.1

A

For whatever period is nessecary for its purpose

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4
Q

An authorised firm is issuing a newsletter to its clients which includes investment recommendations covered by the UK market abuse regulations, the newsletter must include…..

Chapter 3.3.4

A

An indication of how often these recommendations are to be updated.

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5
Q

The disclosure rules are related to what?

Chapter 3.7.1.1

A

Insider dealing

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6
Q

Depositing criminally-obtained cash directly into a building society account is an example of which stage of the money laundering process?

Chapter 3.4.2

A

Placement

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7
Q

An order to effect a trade for illegitimate purposes and which secures the price of an investment at an abnormal level is an example of……..?

Chapter 3.3.1

A

A manipulating transaction

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8
Q

An individual was considered to have comitted market abuse in the UK but the FCA did not seek to sanction them for this offence, this was because?……..

Chapter 3.1.2

A

The individual was already being presecuted for market misconduct

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9
Q

What does “Two bites of the Cherry” mean?

A

The FCA will not look to impose sanctions on those who already sanctions or proceedings in place

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10
Q

Although a trade carried out on a regulated venue fell within the definition of a reportable transaction, the failure of a counterparty to undertake a tranaction report was deemed compliant with the rules. This was because……..

Chapter 3.8.1

A

The counterparty was non-financial

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11
Q

In order to combat the risk of Terrorism, which organisation mat issue direction to firms in the financial sector?

Chapter 3.4.7

A

HM treasury, under schedule 7 of the counter terrorism act.

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12
Q

An employee who destroyed documents relating to a money laundering investigation was cleared of the offence of prejudicing theinvestigation, this was because they………

Chapter 3.3.4.2

A

Did not realise they were relevant

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13
Q

A criminal is trying to launder money. He sells some shares that were purchased with the criminally derived money and invests the proceeds in bonds. This is an example of what stage of the money laundering process?

Chapter 3.4.2

A

Layering

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14
Q

Employees holding manegerial reponsibility are obliged to disclose details of transactions relation to auction products which are based on?

Chapter 3.3.3

A

Emissions allowances

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15
Q

What is the main reason why disclosure of interest rules operate in the equity markets?

Chapter 3.7.3.1

A

To help other judge the impact on price.

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16
Q

What type of notice is normally the first statutory notice giving details of disciplinary action that the FCA proposes to take?

Chapter 2.8.3

A

Warning notice

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17
Q

What is the regulatory status of a trustee or personal representative carrying out regulated activities for which they are seperatley renumerated?

Chapter 2.1.3.4

A

They are required to be authorised.

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18
Q

What threshold condition applies to PRA regulated firms only?

Chapter 2.3.3.2

A

Legal Status

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19
Q

An appointed representative of an insurance company wishes to make a financial promotion. Who is resposible for it content?

Chapter 4.1.4

A

The authorised insurance company

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20
Q

In order for CASS auditors to effectively carry out their mandatory annual audit on firms holding clients assets, information they require will normally include…..?

Chapter 4.8.5

A

The role played by any TPAs

21
Q

What products must cancellation records be retained indefinitely?

Chapter 4.5.2

A

Pension transfers, pension opt-outs or FSAVCs

22
Q

A firm sent out financial promotion to all classes of client. In what case does the firm have a regulatory obligation to clearly identify them as financial promotions?

For which client?

A

Retail clients only

23
Q

When must written portfolio statements from investment managers normally be sent to retail clients?

Chapter 4.7.1.2

A

At least every 3 months

24
Q

The COBS Sourcebook stipulates that a firm transacting business electronically via a website must ensure that……..

Chapter 4.1.5

A

Evidence exists that the client has regular access to the internet

25
Q

The communication of a financial promotion which has not been issued by or approved by an authorised firm is an offense under what?

Chapter 4.3.1

A

Is an offense under the FSMA

26
Q

If firm X communicates a financial promotion for non-MiFID business which was produced and approved by firm Y, under the financial promotion rules what does a firm need to check before it proceeds?

Chapter 4.3.10.2

A

Firm X must check the promotion has not been withdrawn by firm Y

27
Q

A firm must provide a client agreement prior to conducting MiFID business for which types of client?

Chapter 4.2.2

A

Professional clients and retail clients only

28
Q

A firm tried to carry out a suitability assessment before advising a client on whether they should sell some bonds, but was unable to obtain all the information necessary. What should the firm do?

Chapter 4.4.2.3

A

Refuse to make a recommendation

29
Q

A MiFID firm is relying on infromation about a client recieved from another miFID firm. In these circumstance, the information provided

Chapter 4.2.5

A

Should be given in writing

30
Q

Cold calling may be made to retail clients for which of the following products?

Chapter 4.3.8.2

A

OEIC ISAs

31
Q

A financial adviser has recommended a cash deposit ISA, a life policy and a personal pension scheme to a client. For which of these must a KFD be produced?

Chapter 4.5.1.2

A

All of them

32
Q

When a clients trade confirmation is recieved from a third party, within what time period must the firm pass it on?

Chapter 4.7.1.1

A

No later than the business day following the receipt.

33
Q

Is eligible counterparty business partially exempt from COBS?

Chapter 4.1.3

A

Yes

34
Q

The CASS rules are applied in which scenario?

Chapter 4.8.3

A

Discretionary investment management

35
Q

A key condition which must be met for a benefit to be designated as minor non-monetary under the inducements rules is it can?

Chapter 4.6.3.1

A

Can enhance the quality of service provided

36
Q

If a French bank establishes a branch within the UK, under what circumstances will it be subject to the FCA conduct of Business Sourcebook?

Chpater 4.1.2

A

Only if it carries out business within the UK

37
Q

A firm was required to assess the appropriatness of a client when dealing with a recent transaction. This was beacuse the client……

Chapter 4.3.3.3

A

Chose an execution-only service in a non-UCITS fund with embedded derivatives.

38
Q

A firm makes a personal recommendation in connection with a life policy, where this cover is required immediatley. When must a suitability report be provided?

Chapter 4.4.2.2

A

Immediately after the contract is concluded (due to the contract being needed immediatley, you cant do it before now)

39
Q

Cancellation records relating to life policies must be retained for what, if any, minimum period of time?

Chapter 4.5.2

A

5 years

40
Q

Where a firm has served a cancellation notice for a personal pension scheme scheme, for what minimum period, if any, must the record normally be retained

Chapter 4.5.2

A

5 years

41
Q

Inducement rules apply to firms undertaking business with which if the following classes of clients?

Chapter 4.6.3.1

A

Retail and professional clients only

42
Q

When a firm holds itself out to be independent and makes a personal recommendation to a retail client to buy a packaged product, its scope must be which of the following?

Chapter 4.5.1.3

A

The whole of the market

43
Q

A discretionary manager trades much more frequently for client A then for client B. This means that the manager. Could be doing what?

Chpater 4.4.1.1

A

May be churning or may be acting in accordance with client As investment strategy

44
Q

In accordance with the conduct of business sourcebook, a firm is not allowed to approve a financial promotion if?

Chpater 4.3.10.1

A

The promotion is classed as real-time

45
Q

When a stakeholder pension is arranged to whcich cancellation rules apply, at what LATEST point must a suitability report be issued?

A

14 days after concluding the contract

46
Q

Deals under a discretionary management service are exempt from the personal account dealing rules providing that there is…….

A

No prior comss between the portfolio manager and the relevant person

47
Q

What is a key factor that must be included in direct offer promotions?

Chpater 4.3.7

A

Prescribed information about the safekeeping of client investments and money.

48
Q

What is the main purpose of a key investor information document?

Chapter 4.5.1.1

A

To enable investors to make well-informed investment decisions

CISI: UK Regulation (8 decks)

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