Learning outcome 4 Flashcards
- 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
- 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?
A. £5,000
B. £10,000
C. £50,000
D. £100,000
C
- 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
- 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
- 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.
B. To replace the Joint Money Laundering Steering Group and its role as an organisation fighting financial crime.
C. To retrieve money obtained through criminal activities.
D. To implement and monitor compliance with the latest anti-money laundering regulations.
A
