Mock Exam COPY Flashcards
In respect of mortgage advice, which of the following pieces of information is not required as part of the initial disclosures under MCOB 4?
a) Arrears arrangements.
b) Complaints and compensation details.
c) Fees associated with the service.
d) The providers of mortgages under discussion.
a) Arrears arrangements.
The Financial Conduct Authority’s single strategic objective is to:
a) ensure that relevant markets work well.
Incorrect Response
b) govern organisations that manage investments on behalf of other people.
c) oversee the administration of all types of investment business.
d) regulate the marketing and sale of all life assurance products.
a) ensure that relevant markets work well.
Incorrect Response
Under the Certification Regime, individuals performing a specific function that isn’t a senior management function but that can have a significant impact on customers must be approved by:
a) both the FCA and their employing firm.
b) either the FCA or their employing firm.
c) the FCA only.
d) their employing firm only.
d) their employing firm only.
Why was the Financial Action Task Force set up?
a) To assist consumers who have unmanageable debts.
b) To co-ordinate the international fight against money laundering.
c) To implement the treating customers fairly initiative.
d) To provide a central point for consumers to receive information on pension queries.
b) To co-ordinate the international fight against money laundering.
A firm providing debt counselling services on a commercial basis will need to be authorised by the:
a) FCA and for the specific permission.
b) PRA and for all consumer credit activities.
c) Office of Fair Trading (OFT).
d) FCA and for all consumer credit activities.
a) FCA and for the specific permission.
Miranda performs a senior management function in the firm she works for. Which of the following principles does not specifically apply to her role? She must:
a) at all times, act to avoid situations that could lead to risks to the business.
b) disclose appropriately any information of which the FCA or PRA would reasonably expect notice.
c) take reasonable steps to ensure that the business of the firm for which she is responsible complies with relevant regulatory requirements and standards.
d) take reasonable steps to ensure that the business of the firm for which she is responsible is controlled effectively.
a) at all times, act to avoid situations that could lead to risks to the business.
A £12,000 single premium unit-linked investment bond is cancelled by a customer within the cooling-off period. However, during this period, the stock market fell sharply. Consequently, so did the value of the bond. What is the customer likely to receive?
£12,000.
£12,000 less set-up charges.
95% of the surrender value of the investment bond.
The market value of the bond on encashment.
The market value of the bond on encashment.
An authorised firm must maintain records showing details of an adviser’s training and competence. When an adviser who carries out pension transfer business leaves the company or changes role, these records must be maintained for at least what minimum period?
Three years.
Five years.
Ten years.
Indefinitely
Indefinitely
Paul was prosecuted under the Proceeds of Crime Act 2002 and received the maximum sentence of five years in prison and a fine. This means that he must have been convicted of which money-laundering offence?
Acquiring.
Arranging.
Concealing.
Tipping off.
Tipping off.
What maximum prison sentence may apply to an individual convicted of a bribery offence?
3 years.
5 years.
10 years.
14 years.
10 years.
To which body should a firm report a significant breach of handling personal data?
The Financial Conduct Authority.
The Financial Ombudsman Service.
The Prudential Regulation Authority.
The Information Commissioner.
The Information Commissioner.
In seeking to promote competition, the FCA uses its powers to ensure all except which of the following?
Customers are empowered to engage in such a way as to drive competition.
There are no undue barriers preventing new providers entering the market.
Prevention of any single firm or small group of firms from dominating the market.
‘Light touch’ regulation for providers that show a strong track record in product innovation.
‘Light touch’ regulation for providers that show a strong track record in product innovation.
Individuals performing which of the following roles will be individually vetted and approved by the FCA? Those:
in certified functions and those performing senior management functions.
performing an ancillary role.
in certified functions only.
performing senior management functions only.
performing senior management functions only.
The specialist sourcebooks section within the FCA Handbook includes arrangements for:
individual responsibilities.
international trading.
product derivatives.
professional firms.
professional firms.
Mandy is pregnant with her first baby. She has been a full-time self-employed graphic designer since leaving university four years ago. What state benefit might Mandy be able to claim before her baby is born?
Child Benefit.
Income Support.
Maternity Allowance.
Statutory Maternity Pay.
Maternity Allowance.
