KEY STUFF CHAPTER 1

Question 1

HMT impact on FCA

Answer 1

appoints board and chairman

requires reports on effectiveness annually

can subject FCA to independent review

Question 2

FPC meetings and reports schedule

Answer 2

meets quarterly, produces biannual report

Question 3

PRA general objective and the purpose

Answer 3

promote the safety and soundness of PRA authorised firms

avoid instability and minimise adverse effect of failure

Question 4

definition of regulatory failure

Answer 4

FCA and PRA accountable if breaches of the statutory objectives occurred or were made worse through a serious failure of the regulator

Question 5

three FCA frameworks and who they apply to

Answer 5

proactive
reactive
thematic

proactive only applies to fixed portfolio firms

Question 6

4 general powers granted by FSMA2000

Answer 6

grant, vary or withdraw part 4A permission

rule making for authorised and non authorised firms

prosecute financial crime

supervision, enforcement, disciplinary action

Question 7

which three handbooks are not binding

Answer 7

guidance

conduct

evidential provisions are not binding in themselves

Question 8

aim of consumer duty

Answer 8

ensure retail customers receive good outcomes when they purchase products or services

Question 9

scope of consumer duty

Answer 9

any product that is or can be distributed to retail clients

Question 10

4 things that are exempt from consumer duty

Answer 10

anything non retail i.e. only to pro or ECP

commercial products

group products

investment above 50k

Question 11

for firms out of scope of consumer duty, what applies instead, how many outcomes are there and which PRIN does this meet expectations for

Answer 11

fair treatment of consumer outcomes

6 outcomes

expectations for meeting PRIN 6

Question 12

how many outcomes are assessed in consumer duty and briefly what are they

Answer 12

4 outcomes

fit for purpose

fair value

support meets customers needs

consumer understanding

Question 13

to which firms are senior management arrangements, systems and controls (SYSC) binding and not binding

Answer 13

common platform e.g. mifid = binding

non common, not binding but SYSC is a guidance

Question 14

what kind of pensions does the pension protection fund protect

Answer 14

defined benefit pensions

Question 15

pension regulator can force company to do what

Answer 15

pay any missed contributions in relation to a delay in automatic enrolment in a workplace pension

Question 16

how many employees minimum to need to have a workplace pension scheme

Answer 16

1