Last minute tests

Question 1

What is required before a public company reduces its share capital?

Answer 1

A special resolution in favour, which is then confirmed by the court

Question 2

What is Directorate General for Competition?

Answer 2

It is responsible for establishing and implementing competition policy for the European Union

Question 3

Are DIEs regulated by the FCA?

Answer 3

Nope - they are overseas exchanges and hence are not overseen by the FCA

Question 4

Do you need to disclose the fact that financial promotions rules apply to your research?

Answer 4

No, you dont need to disclose this fact, although it is true

Question 5

Do any quantitative criteria apply when a client opts up to be a eligible counterparty?

Answer 5

No, size criteria only applies to professional clients

Question 6

Difference between CJA 1993 and FSMA 2000 in relation to insider dealing?

Answer 6

CJA 1993 outlines criminal case, FSMA 2000 outlines civil case

Question 7

Is a MLRO function needed through FCA requirements or sm&cr regime?

Answer 7

FCA required function

Question 8

Which company determines admission to the AIM?

Answer 8

LSE

Question 9

What are the four class tests?

Answer 9

Gross assets, profits, consideration, and gross capital

Question 10

Who has the responsibility to prepare an insider list?

Answer 10

The company itself

Question 11

Is a commodity trader subject to MiFID?

Answer 11

No - because individuals arent subject to MiFID, it is companies

Question 12

Is an operator of an MTF subject to MiFID?

Answer 12

Yep

Question 13

Who is responsible for information in a prospectus?

Answer 13

Although a sponsor/NOMAD drafts it, it is ultimately the issuer/directors of the issuer that is responsible for the prospectus

Question 14

What percentage of AIM float must be made available to the general public? What about LSE?

Answer 14

0% on AIM. 10% on LSE to make a proper market.