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IOC - UK Financial Regulation > IOC - FSMA 2000 FSA 2012 > Flashcards

IOC - FSMA 2000 FSA 2012 Flashcards

1
Q

According to S19 of FSMA2000, none of the following would require a firm to gain authorisation by the FCA/PRA except:
A: investment advice in newspaper and magazine articles
B: television, radio and cable broadcasts about investments
C: professional bodies providing advice in the normal course of business where the advice is separately remunerated
D: trustees who are not being separately remunerated

A

C.
Members of designated professional bodies carrying on certain incidental regulated activities is not a regulated activity. However, if they are separately remunerated for those activities they do need authorisation

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2
Q 
Which of the following is not a specified investment under FSMA 2000?
A: gilt repo
B: funeral plan
C: residential property
D: spread bet
A

C.

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3
Q 
Under the FSMA2000, a person will not be carrying on specific activities if he does which of the following?
A: establishes a CIS
B: advises in FX
C: published a tip sheet
D: arranges deals in shares
A

B

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4
Q 
Which is not a specified investment?
A: a short term bank deposit
B: an option on physically deliver gas oil
C: a gilt repo
D: a forward rate agreement
A

B.

As gas oil options are physically delivered, they are not a financial instrument

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5
Q 
Which is not a specified investment?
A: floating rate note
B: forward rate agreement
C: national savings certificate
D: contract for differences
A

C.

National savings certificate are not tradable

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6
Q

What is a regulated activity?
A: acting as an unpaid trusted for a portfolio of equity
B: advising in the media on specified investments
C: sending dematerialised instructions regarding the execution of a trade
D: trading a personal portfolio of corporate bonds

A

C.

The unpaid trustee, media column and dealing as principle are excluded activities

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7
Q

Which of the following is a regulated activity?
A: dealing as principle
B: administering the estate of a deceased person
C: establishing a stakeholder pension
D: advising on second mortgages

A

C.

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8
Q

Which of the following is true of designated professional bodies (DPB)?
A: all uk professional bodies have DPB status
B: membership of a DPB gives authorisation to conduct regulated activities in the UK
C: exemption via a DPB is only allowable where the regulated activities are incidental to the main business of the professional
D: DPBs do not need to follow the FCA rules

A

C
Only lawyers accountants actuaries conveyances and chartered surveyors have DPB status. Membership of a DPB does not give authorisation for reg activities

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9
Q

All of the following are true of RIEs except:
A: membership does not confer authorisation as an investment business
B: it guarantees a market place where investors can always deal at fair prices
C: it provides an organised market framework within transactions in investment can be effected
D: it will monitor the conduct of the market so as to prevent manipulation

A

B

Fair prices are not guaranteed although should be likely

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10
Q

The tax and chancery chamber of the upper tribunal is operated by:
A: the PRA
B: trading standards
C: an investment body of financial practisers
D: a government department

A

D

It is run by the ministry of justice

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11
Q 
Who is the tax and chancery chamber of the upper tribunal set up by?
A: FOS
B: her majesty's treasury
C: FSCS
D: the ministry of justice
A

D

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12
Q

Personal responsibility for approval persons has been laid down by
A: seven principles back by a code of practice
B: four general principles supplemented by a code of ethics
C: a code of practice which incorporates a range of principles
D: eight rules and a code of conduct

A

A

4 are general and 3 are for SIFs

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13
Q

Which of the following are not true of the principle of businesses?
A: they apply to uk firms authorised by the FCA
B: they are modified for EEA firms that have passported their business into the uk
C: they do not apply to firms qualifying under UCITS directive
D: they represent a set of fundamental objectives back by FSMA 2000

A

C

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14
Q 
An authorised firm must ensure that only approved persons perform controlled functions. Which of the following is not an example of a required controlled function?
A: appointed auditor
B: compliance oversight function 
C: MLRO
D: appointed actuary
A

A

If an authorised firm is a long term insurer it must appoint someone as an actuary

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15
Q

All of the following are specified by the FCA as a controlled function except:
A: exerting a significant influence in the conduct of the firm’s affairs
B: dealing directly with clients
C: dealing with the property of clients
D: dealing with the assets of the firm

A

D

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16
Q

Which of the following is not a direct power available for the FCA to use where it considers appropriate?
A: prohibit the carrying out of specified functions
B: issuance of public censures for misconduct
C: seek a winding up order
D: impose custodial sentences

A

D

It cannot impose custodial sentences - it must pursuade the court to impose them

17
Q 
If an authorised firm is unhappy with the results of an FCA investigation they may do to the tax and chancery... Under which of the following notices:
A: decision
B: warning
C: supervisory
D: supervisory and decision
A

D

18
Q

FSMA S71 allows private persons to claim damages for losses caused by which of the following?
A: an authorised firm
B: any firm whether authorised or not
C: authorised firms and approved individuals
D: approved individuals

A

A

19
Q

Which of the following is true with respect to decision notices
A: they may be issued to firms and individuals
B: they may be written or oral
C: they need the approval of the courts before they become effective
D: they set out a time limit for remedial action

A

A

On receiving a decision notice the receipant has 28 d to appeal

20
Q 
Which is a significant managers function?
A: audit manager 
B: settlements manager
C: compliance manager 
D: administration manager
A

B

21
Q 
Which of the following is not a pillar of the FCA supervision model?
A: issues and products
B: firm systematic framework 
C: event driven work
D: proactive intervention framework
A

D

This is the PRA’s approach not the FCAs

22
Q 
Which of the following investments is specified under the regulated activities order?
A: futures for commercial purposes
B: stocks in an unincorporated business
C: US dollars
D: premium bonds
A

B.

Futures used by companies for commercial purposes are not specified investments

23
Q

Can a 3rd party appeal to the upper tribunal on behalf of an authorised firm against a decision notice?
A: yes, if the issue is made within 28 days of the notice being issued
B: yes, if the time limits of the disciplinary procedures are extended
C: yes, if the other parties agree to this appeal being made
D: no, only the firm to whom the notice was issued can appeal

A

A

24
Q 
Which of the following would be considered a retail investment product but not a packaged product?
A: regulated CIS
B: shares in investment trust
C: stakeholder pension
D: life insurance policy
A

B
Package products did include investment trust but RDR changed it.
Investment trusts, unregulated CIS and hedge funds are retail investment products that are not package products

IOC - UK Financial Regulation (5 decks)

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