IOC - FSMA 2000 FSA 2012 Flashcards
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
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
Which of the following is not a specified investment under FSMA 2000? A: gilt repo B: funeral plan C: residential property D: spread bet
C.
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
B
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
B.
As gas oil options are physically delivered, they are not a financial instrument
Which is not a specified investment? A: floating rate note B: forward rate agreement C: national savings certificate D: contract for differences
C.
National savings certificate are not tradable
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
C.
The unpaid trustee, media column and dealing as principle are excluded activities
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
C.
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
C
Only lawyers accountants actuaries conveyances and chartered surveyors have DPB status. Membership of a DPB does not give authorisation for reg activities
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
B
Fair prices are not guaranteed although should be likely
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
D
It is run by the ministry of justice
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
D
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
4 are general and 3 are for SIFs
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
C
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
If an authorised firm is a long term insurer it must appoint someone as an actuary
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
D
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
D
It cannot impose custodial sentences - it must pursuade the court to impose them
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
D
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
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
On receiving a decision notice the receipant has 28 d to appeal
Which is a significant managers function? A: audit manager B: settlements manager C: compliance manager D: administration manager
B
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
D
This is the PRA’s approach not the FCAs
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
B.
Futures used by companies for commercial purposes are not specified investments
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
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
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
