IOC - Regulatory Environment Flashcards
According to the provisions of the SMASC in the regulator handbook, the responsibilities of directors must be:
A: clearly and appropriately apportioned
B: reviewed by external auditor on a annual basis
C: recorded and the records kept for 3 years from when the responsibilities change
D: clear, fair and not misleading
A.
A firm must take reasonable care to maintain a clear and appropriate appointment of significant responsibilities among its directors and senior managers. The records must be kept for 6 years.
Which of the following is not a reason for the FCA’s supervisory enhancement programme?
A: to focus on big-picture risks
B: to balance the approach to prudential and conduct risks
C: to create effective relationship management capability
D: to encourage firms to take on more risk
D.
Which ONE of the following is a statutory objective of the FCA?
A: ensuring the uk financial markets are competitive in the EEA
B: providing services that allow a firm to manage and control their risks
C: implementing and monitoring financial legislation
D: securing an appropriate degree of protection for consumers
D.
This is one of the statutory objectives for the FCA.
Statutory objective: ensure markets work well
Operational objective: consumer protection, integrity, competition objective
Who is responsible for reducing risks to the financial system as a whole? A: FPC B: PRA C: FCA D: FPC
A.
FPC’s role - they give instructions to the PRA at the Bank of England
Which of the following statements about the FCA are false?
A: The treasury appoints the board of the FCA
B: The FCA is a company
C: The board of the FCA can delegate its legislative functions
D: FSA 2012 names the FCA as the conduct regulator for the financial services industry
C.
Although answerable to the treasury, the FCA is a company - it is limited by guarantee, directly by the government. It’s board cannot delegate its legislative function.
