Other Regulation Affecting The Advice Process

Question 1

What is the difference between a data controller and a processor?

Answer 1

A data controller is legally accountable for the purposes for which data is processed and the way such processing is carried out.

A data controller is a legal person but not necessarily a natural person. It might be an organisation rather than an individual.

A data processor is a person who processes personal data on behalf of the data controller.

Question 2

What does GDPR define as ‘sensitive data’?

Answer 2

Sensitive data includes information about an individual’s:

Race
Religious belief 
Political persuasion 
Trade union membership
Sexual orientation
Health
Biometric data
Genetic data

Question 3

Which of the following is NOT one of the GDPR principles?

A) data must be adequate (but not excessive) and relevant to the purpose for which it is processed

B) data controllers must take appropriate technical and organisational measures to keep data secure from accidental or deliberate misuse, damage or destruction

C) data must not be kept for longer than 5 years feom the point at which it is gathered

D) data must be kept accurate and uo to date

Answer 3

C) data must not be kept for longer than 5 years feom the point at which it is gathered

It actually states data must not be kept longer than is necessary.

Question 4

What is the penalty for committing a criminal offence in relation to GDPR?

Answer 4

The maximum penalty is the higher of €20,000,000 or 4% of the companies worldwide turnover

Question 5

The pensions regulator is responsible for the regulation of occupational pension schemes only: true or false?

Answer 5

False

The pension regulator is responsible for occupational pensions and private pensions where the employer has a direct payment arrangement

Question 6

What is the role of the pension protection fund?

Answer 6

The pension protection fund provides compensation payments to members of defined-benefit pension scheme if a firm becomes insolvent with insufficient funds to maintain the full benefits for scheme members

Question 7

Which of the following products are NOT subject to MiFID

A) units in a collective investment

B) shares

C) life assurance

D) bonds

Answer 7

C) life assurance

Not subject to MiFID

Question 8

What investments are subject to MiFID?

Answer 8

Receipt and transmission of orders from investors

Execution of those orders on behalf of customers

Investment advice

Discretionary portfolio management

Underwriting the issue of specified financial instruments

Question 9

A general insurer with a head office in one of the member states may set up branches in other member states; these branches will be regulated by the national regulator of the state in which the head office is situated. True or false?

Answer 9

True

Question 10

With which regulator must UK-based IFA’s who sell life assurance or general insurance be registered?

A) FCA

B) PRA

C) CMA

D) IDD

Answer 10

A) FCA

IDD abbreviation of the directive that governs insurance distribution, not a regulatroy body