Learning objective 4 Flashcards
20/21 Q30. How does the Financial Services Act 2012 directly affect the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) in respect of financial stability?
A. It transfers all responsibility to the Bank of England.
B. It makes the FCA and PRA directly accountable to the Chancellor of the Exchequer.
C. It requires the FCA and the PRA to have an appropriate strategy, and work with the Bank of England and HM Treasury to achieve a satisfactory outcome.
D. It requires the FCA and the PRA to work with the European Central Bank to facilitate cross-border co-operation on money laundering activities.
C
20/21 Q31. A professional firm of pension trustees have been deemed to be in breach of the law whilst administering and managing an occupational pension scheme. What maximum fine may be levied by The Pensions Regulator against the firm?
C. £50,000
20/21 Q32. An authorised firm is using the services of an external compliance consultancy to advise the firm on all compliance matters. In respect of this arrangement, the authorised firm should be aware that
A. responsibility for compliance issues ultimately rests with the senior management of the firm.
B. the compliance officer may delegate all responsibility to the external consultants.
C. the external consultants will be ultimately responsible for all compliance matters.
D. the firm need not appoint a compliance officer, providing that the external consultants have been approved by the Financial Conduct Authority.
A
20/21 Q33. In what circumstances would the Financial Services Compensation Scheme provide a compensation payment to a customer?
A. When a complaint has been upheld by the Financial Ombudsman Service, but the regulated firm refuses to compensate the customer.
B. When the scheme is instructed to do so by the Financial Conduct Authority.
C. When compensation is due and the firm that the customer dealt with is unable to meet its liabilities and is no longer trading.
D. When compensation is due and the regulated firm has a large excess on their professional indemnity insurance policy.
C
20/21 Q34. What is the main function of the Financial Action Task Force with regard to the EU Money Laundering Directives?
A. To set standards required to deal with money laundering and terrorist financing.
2021 mock paper Q28. What is HM Treasury department responsible for?
A. Putting into effect the UK Government’s financial and economic policy
2021 mock paper Q29. Which of the following is responsible for watching for systemic risks to the financial system as a whole? A. The Prudential Regulation Authority B. The Financial Conduct Authority C. The Financial Policy Committee D. HM Treasury
C
2021 mock paper Q30. Which of the following is a responsibility of the Competition and Markets Authority?
A. Investigating mergers
B. Product terms being expressed in plain English
C. Enforcement of consumer protection rules
D. Monitoring those holding licences under the Consumer Credit Act
A
2021 mock paper Q31. What is the maximum fine The Pensions Regulator can impose on a company for breaching the law?
C. £50,000
2021 mock paper Q32. Glen runs a small financial advisory firm in Bristol He prefers to spend time generating income for the firm, rather than completing paperwork. Which of the following is his firm unable to contract out to a compliance consultant? A. Remedial work B. Technical support C. Regulatory obligations D. File audits
C
2021m 30. Would an IFA firm always be subject to the first Markets in Financial Instruments Directive (MiFID)?
A - Not if they only advise and arrange investments and do not hold client money
2021m 32. Cameron wishes to appeal against a decision of the Pensions Regulator. To which body should her appeal be made?
D - The Pensions Tribunal
The upper tribunal is for FCA I think
