Learning outcome 11

Question 1

85. When establishing a new risk profile questionnaire for its clients, an authorised firm should consider
    the use of
    A. clearly-phrased and unambiguous questions.
    B. additional charts and graphs.
    C. technical phrases and abbreviations.
    D. open questions.

Answer 1

A

Question 2

86. Janine has joined an authorised firm as a senior manager and overhears one of the staff members, Tim, discussing how he takes advantage of the firm’s lax accounting procedures to handle stolen
    cheques. He suggests that Janine may wish to become involved in the illegal activities. What action should Janine take?
    A. Ask Tim to explain his actions and then dismiss him.
    B. Dismiss Tim immediately without further recourse.
    C. Report the matter immediately to the firm’s compliance officer without saying anything to Tim.
    D. Tighten the firm’s accounting procedures to restrict the illegal activities where possible.

Answer 2

C

Question 3

87. A financial adviser engages in ethical behaviour. The outcome of this for a client is most likely to be
    A. advice which meets the client’s needs.
    B. receipt of recommendations which are socially and ethically responsible.
    C. product recommendations that focus on stakeholder contracts.
    D. a waiver of Financial Ombudsman Service referral rights.

Answer 3

A