Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

RO1 Feb 2021 > Mock Exams > Flashcards

Mock Exams Flashcards

1
Q

Compliance officer concern if have loads defaulted

A

principle of financial soundness

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

House in joint tenants

A

house goes to spouse

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

condition of being a trustee

A

individual must be sane

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

controls enduring power of attorney

A

court of protection

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Record keeping

A

record of pension transfer indef and records of pension opt-outs indef

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Most important secondary legislation

A

RAO

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Companies that do not meet listings req for london stock exchange

A

the alternative investment market

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Money Laundering req evidence of identity

A

transfer of pension and sale of stakeholder pension plan both with premiums

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Emergency funds

A

Between 3-6 months salary

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Ltd gone into administration support from Financial compensation scheme

A

executors of deceased receive compensation and info req before compensation approved

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

PIPSI

A

Protection, Income Protection, Pensions, Savings, Investments

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Levels FA can provide

A

possible to transact business on insistent customer and execution only not covered by FOS

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Regulates sale of lifetime mortgages

A

FCA

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Investment Bond

A

Single premium non-qualifying plan

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Min standards firm satisfy order to retain authorisation

A

threshold conditions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

investors buy previously issued equities from other investors

A

the secondary market

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Invest money for 3 years, most reliably achieve return for him

A

deposits

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

breach FCA

A

enforcement division

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

following block 9 guide relevant to all firms

A

FC

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

FA with misappropriate client funds

A

sack and report matter to FCA

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

SL req

A

anything other than top ups

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

FCA and key cultural drivers

A

believes these drivers have an influence on behaviours of management and staff and so impact customer outcomes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Pension regular max fine

A

£5,000

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Pension plan without establishing suitability of product

A

violate know your customer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Finanial stability board

A

International

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

Primary economic tool in UK

A

Interest rates

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

mental capacity act 2005 became effective

A

October 1 2007

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

period of reflection cooling off period begins

A

when terms and conditions are received

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

referred complaint to FOS

A

case handling fee levied by FOS charged to the respondent, compensation award binding

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

FCA authorisation

A

anyone that is not appointed and then advising

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

FOS Awards

A

award on costs on top of any max compensation amount and can take to court

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

Purpose of with profit funds

A

provide smoothed investment return for investors

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

qualify for endowment policy

A

at least 75% of premiums payable over the term

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

objects decision of FCA can appeal to

A

upper tribunal tax and chancery chamber

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

financial difficulty

A

debt management plan

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

FCA regulations on money laundering found

A

senior management arrangements systems and controls sourcebook

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

bankrupt end

A

after 1 year

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
38
Q

six outcomes of treating customers fairly TCF

A

evidence from MI and press, adequate training

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
39
Q

miffed firm keep approvals for mortgages

A

5 years

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
40
Q

lasting power of attorney can cover financial and welfare

A

need two separate copies

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
41
Q

is a living will legally binding in england

A

No

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
42
Q

dividend yield usually lead to a share being described as an income share

A

4%

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
43
Q

contract terms must be

A

in plain and intelligible language

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
44
Q

FCA high level of standards PRIN

A

Principled for business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
45
Q

ensure suitability of advice falls under FCA Principle

A

customers relationship of trust

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
46
Q

debt management plans licensed under

A

Consumer credit act

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
47
Q

can trustee be beneficiary under trust

A

yes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
48
Q

Advantage of renewable rate critical illness

A

premiums likely to start lower

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
49
Q

Portfolio of gilts, holds until maturity

A

her gain with be tax free

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
50
Q

specialist qualification over and above standard level 4

A

pension transfer specialist

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
51
Q

benchmark for mortgage payment protection insurance

A

no more than 60 days

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
52
Q

data protection - sensitive data

A

any personal info

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
53
Q

successful application for trading as IFA

A

Successful receive scope of permission notice and fit and proper

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
54
Q

child benefit

A

tax pay on the element applicable to the first child by 20% on the balance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
55
Q

ethics

A

tell me and show me to prove to me

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
56
Q

application form completion

A

the client

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
57
Q

deliberately misleading or attempting too falls under conduct rule

A

integrity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
58
Q

main benefit of management information firm

A

allow issues to be identified and rectified

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
59
Q

assessing client needs - steps

IDQP

A

identification discussion quantification prioritisation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
60
Q

full compliance of FCA principles for business

A

is evidence of but not enough to prove threshold condition 5 is met

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
61
Q

context of regulation what does general prohibition mean

A

no-one may carry on regulated activity wtihout being authorised or exempt

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
62
Q

whom a lasting power of attorney registered

A

the public guardian

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
63
Q

ethics principles

A

11

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
64
Q

dividend allowance £2000 - basic tax payers pay 7.5% on dividends and higher rate taxpayer 32.5%

A

7.5% on extra dividends

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
65
Q

life insurance policy in contract law the application form represents

A

offer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
66
Q

controls interest rates

A

bank of england

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
67
Q

online business

A

FCA E Commerce directives

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
68
Q

a rule to cover every potential situation is

A

neither desirable nor achievable

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
69
Q

medium term investments

A

5-15 years

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
70
Q

FCA receive funding from

A

the financial services industry

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
71
Q

which not a uk government method of influencing the economy

A

interest rates

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
72
Q

consumer credit act of 1974 covers credit to

A

£25K

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
73
Q

low cost endowment

A

aim to but does not guarantee to repay the mortgage at the end of the term

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
74
Q

max FOS award

A

350,000

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
75
Q

example of good implementation of customer fair treatment

A

taking legal action against a former member of staff who has tampered with records

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
76
Q

product categories in the ICOBS handbook

A

3

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
77
Q

exempt from consumer credit act 1974

A

building societies

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
78
Q

min percentage a property must be used for residential purposes for mortgage to fit the MCOB definition

A

40%

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
79
Q

leasehold who owns property land building stands

A

The landlord

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
80
Q

ethical approach to taking over clients

A

work through them starting from those that would benefit from a review

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
81
Q

financial intermediary firm can hold money

A

in a separate client bank account

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
82
Q

commonhold who owns the land

A

the commonhold association

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
83
Q

conflict between FCA rule and principles

A

the principles will always take precedence

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
84
Q

who get most protection under FCA COBS rules

A

retail clients

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
85
Q

off the page gov approved financial services

A

a multi distribution organisation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
86
Q

order to act as an attorney under lasting power of attorney an individual must be

A

overr 18 and solvent

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
87
Q

operating as a mortgage adviser

A

whole market, multi tied or single tied

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
88
Q

How many directors must a plc have as a min

A

2

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
89
Q

protecting from loss arising from financial transaction

A

use derivatives

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
90
Q

pay fees in installments

A

this is possible

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
91
Q

home reversion plan scheme

A

regulated ny FCA

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
92
Q

Provision of wills and executorship by banks is regarded as

A

core service

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
93
Q

max period reflection cooling off period for stakeholder pension

A

30 days

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
94
Q

ultimate responsibility of ensuring liquidity as the lender of last resort

A

the bank of england

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
95
Q

life office free asset ratio

A

surplus assets over liabilities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
96
Q

not pay on critical illness

A

loss of a limb

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
97
Q

cancellation notice when SL issued

A

no later than the cancellation notice

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
98
Q

deal with the estate of a deceased person left no will

A

their administrators

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
99
Q

regulated home finance advise regulated rules

A

MCOB

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
100
Q

Tracker fund

A

the investor is lie to benefit from dividends

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
101
Q

identify FCA as regulator

A

authorised and regulated by the financial conduct authority

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
102
Q

consumer credit is regulated by

A

FCA

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
103
Q

Investor buy previously issued equities from other investors

A

the secondary market

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
104
Q

ultimate standard of demonstrating ethical practice

A

show me

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
105
Q

enduring power of attorney can brother make decisions on health care provision

A

no

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
106
Q

employment and support allowance eta split into

A

2 phases

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
107
Q

definition FCA use to define honesty integrity and reputation

A

no formal definition

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
108
Q

body responsible for co-ord interest rates EU

A

european central bank

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
109
Q

EU member state compelled to introduce an element of european law via parliament

A

a directive

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
110
Q

lifetime mortgage

A

a generic term for equity release products

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
111
Q

pension provider keep copy fo approvals

A

5 years

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
112
Q

ensure suitability of its advice falls under FCA Principle

A

customers relationship of trust

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
113
Q

dying without a will

A

intestate

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
114
Q

mortgage where monthly repayment fall everytime pound rises

A

a foreign currency mortgage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
115
Q

controlled function

A

must be individually approved

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
116
Q

cancellation notice SL issused

A

no later than the cancellation notice

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
117
Q

deferred period in relation to income protection insurance

A

the period at start of an illness before the benefit becomes payable

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
118
Q

highest interest rates

A

90 day deposit account

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
119
Q

communication by telephone not one of the regulators requirements

A

the produce that will be recommended must be described

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
120
Q

under financial compensation scheme max limit on compensation for non compulsory insurance

A

90% of vaild claims with no max

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
121
Q

timing of interest had impact on the return the standardised measure is

A

AER

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
122
Q

Firm have systems and controls

A

appropriate to its business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
123
Q

FA investigated by FCA

A

should be notified in all but limited circumstances

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
124
Q

not be a trustee

A

16 year old

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
125
Q

EU brought in new legislation that now applies immediate

A

Regulation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
126
Q

fund holds fixed interest securities with rating lower than BBB

A

Junk

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
127
Q

Job tackling global money laudering

A

financial action task force

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
128
Q

body to confiscate assets fo criminals

A

NCA

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
129
Q

Process of capitalising debt

A

constitutes an increase in mortgage debt and requires disclosure

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
130
Q

covered in terms for consumer credit act 2006

A

an unincorporated association

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
131
Q

lasting power of attorney includes decisions about welfare

A

and to consent to or refuse medical treatment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
132
Q

dividend

A

share in the profit of a company

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
133
Q

rules around data protection

A

any relevant filing system subject to protections and anyone obtain of data

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
134
Q

bankruptcy order made

A

the official receiver takes control of the debtors property

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
135
Q

ethical problem in firm can be solved by

A

dilemma resolution

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
136
Q

purpose of critical illness

A

provide lump sum when insured suffers serious illness

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
137
Q

rules arounds liquidity in IFPRU7 require firm to

A

be self sufficient and maintain adequate liquid resource

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
138
Q

qualifying endowment policy level of life cover

A

at least 75% of the premiums payable over term

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
139
Q

Endowment life cover

A

Broadly speaking, in order to be a qualifying policy, an endowment must provide a minimum life insurance benefit of 75% of the premiums payable over the term. This can be reduced for individuals over 55 years of age. In exchange for following these rules, qualifying policies receive beneficial tax treatment.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
140
Q

savings are protected and channelled into

A

capital management

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
141
Q

trading floor

A

on-exchange financial market

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
142
Q

discretionary portfolio

A

does not have the time or expertise

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
143
Q

equity release is for borrowers

A

already own property and wish to release money for variety of reasons by way of mortgage or remortgage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
144
Q

Ijara scheme

A

will not own any portion of the property until end of agreement

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
145
Q

IHT comes in at 325,000 own-life whole of life policy increasing cover written in trust

A

for daughter and typically 6-10 times amount to protect

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
146
Q

Limited liability partnership

A

cannot pursue individual for partnerships debts except where personal guarantee

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
147
Q

contract insurance issue letter of acceptance

A

known as counter offer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
148
Q

joint tenancy ownership

A

survivor gets property

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
149
Q

bankruptcy order

A

prove inability to pay

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
150
Q

leave investments to grandchildren

A

discretionary trust

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
151
Q

income in possession trust

A

wife enjoyed income from trust and then pass onto two children

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
152
Q

FCA enforcement powers to meet objectives

A

eight regulatory principles

153
Q

pillar 1 requirements of capital req directives

A

insufficient capital to meet current credit market and operational risks

154
Q

bank activity regulated by

A

prudential regulation authority PRA

155
Q

Regulating activities of london stock exchange

A

FCA financial conduct authority

156
Q

Part 4a permission provided by

A

PRA

157
Q

Advantage of share price performance

A

manipulating transactions

158
Q

routine supervision FCA

A

named individual supervisor

159
Q

FCA considers financial resources and

A

systems and controls, governance arrangements and risk management capability

160
Q

disclose regulatory status

A

on email footer and declare same on business cards

161
Q

re-authorising firm have to pay application fee

A

50% or new applicant

162
Q

Subject to an investigation and hasn’t been notified

A

carrying on regulated activity without authorisation

163
Q

Upper tribunal tax and chancery chamber appeals

A

permissions approval withdrawal but not against capital adequacy

164
Q

Loan cooling off period

A

7 days

165
Q

Max term of imprisonment

A

2 years

166
Q

delaying FCA authorisation of a firm

A

incomplete application

167
Q

senior managers and certification regime

A

classified as core

168
Q

records relating to advice

A

SL retained for 5 years and lit 6 years

169
Q

breached data protection principle

A

relied on pre-ticked boxes to verify consent

170
Q

rapid resolution complaint dealt with

A

3 business days

171
Q

Gov org responsible for national strat on financial capability debt and financial education

A

money and pension service

172
Q

ending a relationship means that investments can be destroyed

A

3 years post the date relationship ended

173
Q

Advice on company pensions cannot

A

provide specific choices on recommendations to the choice he should make

174
Q

notice of cancellation period deemed to serve

A

on the date it is posted to the appointed representative

175
Q

IHT planning least relevant

A

income tax status

176
Q

main reason for collecting details on outstanding debts

A

to ensure liability could be met if they were to die or earning cease due to illness

177
Q

action adviser take if client chooses not to address need identified

A

should record as part of advice process

178
Q

SL failed most likely due to

A

cost of implementation of products recommended

179
Q

Outcomes based regulation best described as

A

regulation based on what might happen in the future

180
Q

Conduct risk

A

how investments are explained to clients and how quality controlled

181
Q

failed fit and proper test

A

entered into an independent voluntary arrangement with her creditors

182
Q

key aims of senior managers and certification regime

A

provide clarity of responsibility / give FCA wider powers to take enforcement action / make firm responsible for authorising those who undertake significant harm

183
Q

FCA clients eligible complainants

A

those that are associated with financial products

184
Q

Financial services compensation scheme

A

all of investment bonds and half of savings if jointly owned

185
Q

Pension ombudsman consider complaints

A

admin related and decisions of pension protection fund

186
Q

firms describing as indépendant must

A

allow off panel recommendations and ensure model portfolios cater for clients individual circumstances

187
Q

adviser charges might be paid by

A

hourly rate, fund related fee deducted for investment, fund related fee deducted from product charges no commission related fees

188
Q

basic advice permitted to advise on

A

cash ISA and gov products such as stakeholder pensions

189
Q

SL for personal pension plan

A

must show why at least as suitable as stakeholder and show any disadvantages

190
Q

petitioning the court for bankruptcy order

A

prove inability to pay by showing not complied within 3 weeks order has been made

191
Q

Trust = leave investment to grandchildren on basis agreed by children

A

discretionary trust

192
Q

Trust = investment left to wife to have an income and then upon death capital split between children

A

interest in possession trust

193
Q

put into effect uk gov financial and economic policy

A

HM Treasury

194
Q

Failed pillar 1 req of capital req directive by PRA

A

insufficient capital to meet current credit, market and operational risks investment

195
Q

bank amortised to provide advise - regulated by

A

PRA

196
Q

Financial policy committee

A

power ensure banks increase capital during growth so sufficiently protected during decline

197
Q

Part 4a Permission

A

provided by PRA investment

198
Q

FCA risk based approach to supervising firms based on 3 pillars

A

proactive firm / group supervision / event driven reactive supervision / issues and products supervision

199
Q

subject to capital requirements directive = required

A

to undertake stress testing of financial resources

200
Q

upper tribunal tax and chancery camber can hear appeals against FCA except relating to

A

firms capital adequacy

201
Q

reports of complaints must include

A

4 weeks / 8 week / after 8 weeks

202
Q

gov responsbile for strat on financial capability debt and education

A

money and pensions service

203
Q

earliest date client agreement relating to initial investment could be destroyed

A

on the date the relationship ended

204
Q

where no rules to cover a situation which takes precedence

A

FCA principles for business

205
Q

aims of senior managers and certification regime are to

A

inc give FCA wider powers to take enforcement action

206
Q

describing advice as independent must

A

allow off panel recommendations and ensure model portfolio cater for client individual circumstances

207
Q

adviser charges might be paid

A

in related fee deductions

208
Q

longer cancellations policies

A

pension transfers and life policies

209
Q

function of financial services by means which savers ready assess reconciled with borrowers req for long term funds

A

liquidity

210
Q

payment settlement clearing trading systems examples of

A

infrastructure

211
Q

reponsible for macro prudential regulation of financial service

A

financial policy committee

212
Q

distinguish friendly societies from ordinary life assurance companies

A

many products qualify for preferential tax treatment

213
Q

core service

A

mortgage and loans

214
Q

lower interest rates result in

A

rise in share prices

215
Q

main objective if monetary policy committee MPC

A

meet government inflation target

216
Q

IHT nil rate band 325k 650k for couples then charged at 40% if no children involved and 20% if there are

A

664k - 650k = 14k - 20% = 2.8K

217
Q

When would sole trader pay national insurance

A

if business employs someone other that the proprietor

218
Q

person dies intestate no children but married how much estate pass to child

A

half the residual amount after the first 270K of the estate has passed to peter

219
Q

who can witness a will

A

the person that is not a beneficiary

220
Q

insurance company consideration to the policyholder in formation of life assurance

A

paying or promising to pay the premium

221
Q

warren employés services of IFA on suitable lie assurance product - correct legal position

A

IFA owes duty of care under law of agency

222
Q

set up trust for children, who is the legal owner of the money

A

the appointed trustees

223
Q

main advantage of a flexible power of appointment trust used by most life offices

A

gives trustees power to vary beneficiaries according to family circumstances

224
Q

type of trust that arises when trust fails

A

resulting trust

225
Q

set up trust for nephew for university fee

A

bare trust

226
Q

event of valid claim on the life policy held under trust, provide documents except

A

grant of probate

227
Q

3 certainties present to create a trust

A

intention to create, specified matter and specified beneficiaries

228
Q

interest a remainderman have in a trust property

A

reversionary interest

229
Q

single strategic objective of ensuring markets work well

A

FCA

230
Q

Unregulated investment product

A

Premium bonds

231
Q

fundamental principles of EU bulk of economic law

A

Treaties

232
Q

EU directive aim to improve functioning of financial market

A

markets in financial instruments directive 11

233
Q

regulatory body that investigates and addresses issues of concern regarding mergers and cartel

A

the competition and markets authority

234
Q

CMA competition and markets authority aims to deter wrongdoing

A

delivering effective enforcement

235
Q

FCA objective to enable customers to make informed choice

A

Promoting competition

236
Q

FCA risk based approach to supervision flexible portfolio subject to

A

pillars 2 and 3 only

237
Q

statement regarding mystery shopping false

A

big part of FCA and undertaken freq

238
Q

Under FCA model pillar 1 relates to

A

proactive supervision

239
Q

purpose of threshold conditions COND in FCA handbook

A

min standards a firm must satisfy to become and remain authorised

240
Q

main purpose of the FCA general prudential sourcebook GENPRU

A

sets out rules and guidance on adequacy of financial resources for regulated firms

241
Q

in what section of FCA handbook would you fund rules on guidance and how key responsibility for managing business should be allocated

A

SYSC

242
Q

Firm arranges general insurance policies

A

ICOBS

243
Q

In what circumstance can person aggrieved by decision of upper tribunal appeal to court of appeal

A

only on a point of law

244
Q

which rule applies an IFA under the authority client assets sourcebook CASS

A

if authorised to hold money must hold separately from own money in client bank account

245
Q

under anti money laundering - following not acceptable means of verifying ID

A

recent bank statement

246
Q

how long personal data processed for a particular purpose held?

A

no longer than necessary

247
Q

under FCA rules when must authorised firm refer to a customer to the internal complaints

A

at or immediately after point of sale

248
Q

how is Financial Services Compensation Scheme funded FSCS

A

By general levy on authorised firms

249
Q

Which protected product must the FSCS make arrangement to secure continuity by transferring business to another provider

A

long-term insurance

250
Q

which client gets least protection under the FCA business source book rules COBS

A

Eligible counterparts

251
Q

following may a firm be permitted to classify a retail client as elective professional client

A

only if the firm has evidence that client has sufficient expertise experience and knowledge

252
Q

to provide independant advice firms must

A

assess sufficient range of products that are sufficiently diverse in terms of type and issuer to ensue clients investment can be suitably met

253
Q

what is duty of representative of marketing group who give investment advice on groups products

A

select appropriate product for client from range of products offered by the product provider they represent

254
Q

example of best execution

A

an investment from sells shares on behalf of client on best available terms

255
Q

retail clients on stakeholder products

A

a firm must explain why chose the stakeholder product

256
Q

stakeholder range statement

A

pension providers can charge min annual management charge of 1.5% of value of pension reducing 1% after ten years

257
Q

EU directive stated intention of aligning customer protection for insurance based invest products by mifid 11

A

the insurance distribution directive IDD

258
Q

Which sales situation req client agreement

A

IFA selling collective investment scheme to client

259
Q

which statement about completion of term assurance application form fo you think is true

A

the financial adviser may complete the application form but he customer must sign it

260
Q

statement about columnar right to cancel regulated contract incorrect

A

pension open market there is a cancellation substitute notice procedure giving 14 days period refection before annuity is processed

261
Q

fact find establishes that cannot afford to meet financial needs at once

A

FA should help establish order of priorities

262
Q

liabilities section of fact find places emphasis on

A

Mortgages

263
Q

under which FCA senior management function would firm MLR officer sit

A

required functinos

264
Q

main purpose of FCA Code of conduct COCON

A

rules are intended to drive up standards of individual behaviour in FS

265
Q

in relation to the statement of prince for approved persons APER which applies to approved persons who perform higher functions

A

ensure the business is organised so can be controlled effectively

266
Q

primary responsibility for managing conflict of interest within authorised investment firm

A

senior management

267
Q

relation to managing conflict of interest which statement false

A

internal audit function essential to management of conflict of interest

268
Q

each of following is one of six consumer outcomes relating to fair treatment of customers with exception of which one?

A

consumers are obliged to take advice regarding which insurance products will best meet their needs

269
Q

regulator guidance on management information relating to fair treatment of customers is it should be accurate timely and relevant and

A

consistent

270
Q

component of ethical framework can be described as policies procedures tool kits for employees to use

A

operational

271
Q

which suggests organisation has values led commitment to ethics

A

focus on preventing rather than correcting unethical behaviour

272
Q

PIPSI

A

Protection Income protection pensions savings and investments

273
Q

whose interests should a trustee represent

A

the beneficiaries

274
Q

first communication by telephone which following is not one of the regulators req

A

the products that will be recommended must be described

275
Q

example of treating customers fairly

A

take into circumstances and central to corporate culture

276
Q

statutory maternity pay

A

a min of 6 months

277
Q

tied representative from a bank when giving advice

A

recommend appropriate contract for client from company range

278
Q

qualify for income support

A

16 years attained

279
Q

under principles based approach to regulation, connects risk to compliance and ethical issues

A

GRC

280
Q

Market value reduction applies to his with profits bond what is market value reduction

A

method by which the remaining investors in the fund are protected when someone withdraws cash

281
Q

following banking crisis the FCA introduced new approach

A

intensive supervision

282
Q

certified or an approved person role under

A

financial soundness

283
Q

order of bankrupcy

A

secured creditors, costs of bankruptcy, preferential debts, ordinary debts

284
Q

Employment and support allowance ESA split into

A

2 Phases

285
Q

max period of reflection cooling off period for stakeholder pension

A

30 days

286
Q

FCA and PRA statutory duty

A

contribute to protecting and enhancing the stability of the financial systems

287
Q

the financial stability board is

A

international

288
Q

reduce interest rates across eurozone

A

the european central bank

289
Q

dual authorisation from PRA & FCA

A

major deposit taker offering full range of investment products and services

290
Q

stimulate economy increase capital expenses

A

capital expenditure can be spent at home to stimulate employment tax cuts spent on imports

291
Q

decision on interest rates from chancellor to bank

A

to remove political influence

292
Q

defined contribution pension scheme - amount primarily receive based on

A

investment peformance

293
Q

long are capital growth

A

shares

294
Q

liability for trade debts

A

unlimited

295
Q

trust - transfer claim of monies to the beneficiary

A

absolute

296
Q

reduce risk protect and enhance

A

the financial policy committee

297
Q

european economic area

A

EU plus iceland leichtinstien and norway

298
Q

overal responsibility for senior management functions

A

chief executive

299
Q

12 renumination policies effective form based on

A

standard salaries

300
Q

exempt mifid capital resource requirement

A

20K

301
Q

protection insurance cancellation period

A

30 days

302
Q

insurance company mange and reduce financial risks to business by

A

maintaining adequate levels of solvency and reinsurance arrangements

303
Q

FCA notified of terminatinos

A

14 days

304
Q

products subject to rules on persistency

A

singel premium life and pension contracts

305
Q

client agreement relating to investment be destroyed

A

5 years

306
Q

ethnical perferances

A

pension planning

307
Q

leadership tackle misconduct

A

by establishing an ethical vision and means to achieve it

308
Q

ethnical dilemmas from a client

A

ask a trusted colleague

309
Q

quantitive easing

A

not way of raising money to fund grwoth

310
Q

sale rent back agreement differ from home reversion scheme

A

home reversion scheme are for people to release equity from their property

311
Q

member of defined contribution occupational pension scheme can have their share identified

A

earmarked

312
Q

disclosure and representations act 2012

A

take resonable care not to make a misrepresentation

313
Q

if not will and no children

A

receive entire estate

314
Q

HMRC directly reponsible for occupational pension scheme

A

the scheme trustees

315
Q

truteees standard of care

A

utmost diligence

316
Q

body had overall aim of raising rate of sustainable growth of economy and achievement of rising prosperity

A

HM treasury

317
Q

objective of competition and markets authority can be described as

A

competition between companies in the uk remains fair for the benefit of business consumes and the economy as a whole

318
Q

macro-prudential regulation for identifying systemic risks within financial services sectir

A

financial policy committee

319
Q

firms make it clear who is repsonsible for which area

A

senior management responsibility

320
Q

FCA liquidity tests for high risks firms

A

every 24 months

321
Q

firm insure against actions from FCA

A

in respect of its own costs in defending FCA enforcement action and any costs it may required to pay to the FCA

322
Q

FCA periodic fees

A

soley on the firms share of FCA budget for the current tax year

323
Q

regulated advice as a result received initial disclosure document and demands and needs statement

A

advice on private medical insurance

324
Q

agreement involvement credit up to 25K regulated the 2006 act removed the upper limit for

A

high net worth debitors

325
Q

insurance company

A

PRA will determine whether meets threshold conditons

326
Q

possession of assets and money

A

assets for a max of 28 days and not permitted for money under any circumstances

327
Q

max FOS award

A

355K

328
Q

european standardised info sheet and key info document

A

buy a property with a mortgage and money to invest

329
Q

invested assets section least likely to reveal

A

ability to fund further investment

330
Q

degree to which advisers are explaining life assurance contracts adequately most revealing

A

persistency ratios

331
Q

Must have a principles and practices of financial management document for these types of business

A

with profit whole of life

low cost with profits whole of life

332
Q

dual regualted firm

A

the firm is regulated and supervised by two different regulators one on prudential and one on conduct

333
Q

help to buy

A

not allowed to sub let

334
Q

micro prudential decisions

A

prudential regulation committee

335
Q

macro prudential regulation and systemic risks

A

financial policy commitee

336
Q

freq FCA conduct periodic capital and liquidity tests for high risk

A

every 2 years

337
Q

client agreement not req

A

where investor recieved advice from direct offer financial promotion and where life office advises on life and pension policies as a principal

338
Q

Quantitive easing

A

liquidity increased resulting in lower interest rates

339
Q

Trading floor

A

on-exchange financial market

340
Q

joint tenancy

A

goes to the other if die

341
Q

limited liability partnership

A

cannot be pursued for partnership debts except where provided personal guarantee

342
Q

wife has income from trust and then capital split between children

A

interest in possession trust

343
Q

PRA informed building society that failed to meet pillar 1 req of capital req directive

A

means it has insufficient capital to meet current credit market and operational risks

344
Q

FCA when making rules and carrying out investigations may also pay due regards to

A

eight regulatory priniciples

345
Q

FCA three operational objectives

A

consumer protection integrity of the uk financial system and competition

346
Q

organisation tasked with identifying monitoring and taking action to remove reduce systemic risks with view of protecting and enhancing resiliance

A

the financial policy committee

347
Q

bank based in the UK uthorised to provide on investments - regulated

A

PRA

348
Q

Named individual supervisor

A

a fixed portfolio firm will have over a flexible portfolio firm

349
Q

regulator reponsible for monitoring london stock exchange

A

FCA

350
Q

which body in PRA responsible for important micro prudential decisions

A

Prudential regulation committee

351
Q

FCA panel meet on monthly basis to discuss

A

current and future issues of relevance to FCA regulated firms

352
Q

investments and subsidiary financial planning - part 4a permission provided by

A

the PRA

353
Q

subject to FCA investigation and not notified

A

insider dealing

354
Q

time for agreement tot be sent loan

A

7 days

355
Q

consumer credit act expanded definition of individual entitled protection

A

sole traders partnerships of 3 or fewer partners and unincorporated associations

356
Q

cancellation home insurance

A

14 days

357
Q

miffed exempt capital resource

A

20K

358
Q

mortgage introducers do not req FCA authorisation

A

do not provide advice to clients

359
Q

exempt from capital req directives - most likely to be

A

small intermediary business

360
Q

appointed rep hold client money

A

not permitted to hold under any circumstances

361
Q

insurance comp applied to both PRA and FCA for authorisation

A

PRA determine meet threshold conditions

362
Q

pension ombudsman can receive complaints relating to

A

the decision of pension protection fraud and the administration of occupational schemes

363
Q

personal pensino SL and literature

A

records relating to advice min of 5 years and literature 6 years

364
Q

key aims of senior management

A

make firm responsible for authorising those who undertake sig harm functions, give FCA wider powers, provide clarity of responsibility

365
Q

likely reason to appeal to upper tribunal tax and chancery chamber

A

because FCA refused application for authorisation

366
Q

max term of imprisonment

A

2 years

367
Q

contract terminated

A

need to tell FCA 14 days laters

368
Q

solvency 11 directive

A

family income benefit, term assurance, income protection insurance

369
Q

fair clear not misleading

A

stocks and shares and skateholder pension

370
Q

independant firm

A

allow off panel recommendations and ensure model portfolio caters for clients individual circumstances

371
Q

agreemnet not req

A

where the investor receives advice from a direct offer financial promotion and were a life office advises on life and pension policies as a principals

372
Q

multi-tied

A

range of products but restricted ot one provider

373
Q

earliest date investments destroyed

A

on the date the client relationship ended

374
Q

principles and practices of financial management document

A

with-profits whole of life and low cost with profits whole of life

375
Q

lighter touch advice

A

questions about debt levels and investment objectives and questions about toloreance of risks and pension rights

376
Q

latest date an SL can be produced

A

2 weeks

377
Q

SL non compliant

A

cost of implementation of products recommended

378
Q

Risk management category

A

identifying the risk profile of the business

379
Q

monitoring persistency and decline

A

investigate why there is no improvement in performance

RO1 Feb 2021 (7 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions