Principles And Rules Set Out In The Regulatory Framework Flashcards

1
Q

What is general prohibition

A

Offence to carry out regulated activity unless a person is exempt or authorised

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2
Q

To whom can you. Appeal if authorisation is rejected by the FCA

A

The upper tribunal

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3
Q

Who is exempt from authorisation

A

If an authorised person has accepted responsibility in writing (ARs)
Professional firms which are members of a professional body when carrying out activities which are incidental to sit professional services

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4
Q

If a firm requires authorisation from both PRA and FCA, how do they apply

A

Apply to PRA and it is then assessed jointly by FCA

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5
Q

What is the statutory time,I it for the FCA to decide on granting approval

A

6 months for a complete application or 12 months for an incomplete application

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6
Q

What do you get from the FCA when they grant permission

A

Scope of permission notice

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7
Q

What are controlled functions

A

Significant influence on authorised persons affairs
Dealing with customers in connection with regulated activities
Dealing with the property of customers in connection with regulated activities

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8
Q

What are the 4 significant influence functions

A

Governing functions
Required functions
Systems and controls functions
Significant management functions

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9
Q

What is the 5th control function that isn’t a significant influence function

A

Customer function

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10
Q

What are the responsibilities of regulated firms

A

Conduct of employees, agents and ARs

Must have systems in place to manage risks

Ensure those carrying out controlled functions are approved

Advice given by representatives

Nominated compliance officer

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11
Q

What are the 2 categories of PRA senior management functions

A

Executive functions

Oversight functions

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12
Q

What activities can appointed representatives undertake

A

Advising on investments

Arranging deals in investments

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13
Q

How. Any principles can an AR carrying out investment business have

A

1

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14
Q

How many principals can a mortgage business AR have

A

1 for for each class of business

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15
Q

How many principals can an insurance AR have

A

Any number but need to all enter into a multi-principal agreement

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16
Q

In a multi-principal agreement for insurance ARs, what must the lead principal handle

A

All complaints

17
Q

Which records must be kept indefinitely

A

Pension transfers, pension opt outs and FSAVCs

18
Q

How long must life policy records and pension contracts be kept for

19
Q

Which system is used for regular reporting to the FCA

20
Q

What must firms report annually to the FCA

A

Detailed info on capital

21
Q

How often must firms report complaints data

A

Twice a year

22
Q

What does guidance on notifications give in terms of its expectations

A
Significant fraud crime
Major breach 
Insolvency
Changes of name, status, address etc 
If accidentally given the wrong info to FCA
23
Q

How long must training records be kept for mifid, non mifid and pensions specialists

A

5 years, 3 years and indefinitely after the cessation of employment

24
Q

What are the 3 steps in money laundering and briefly describe each

A

Placement - through banks, travellers cheques, life insurance policies to turn illicit cash into cheques from a financial institution

Layering- transactions to conceal origin

Integration - converted into the proceeds of a legitimate business or investment portfolio

25
Name 4 criminal offences under the proceeds of crime act 2002
Conceal, disguise convert or transfer criminal property To be involved in arrangement to facilitate. The squishy ion, retention, use or control of criminal property To acquire use or possess criminal property Failure to disclose
26
What uk regulations implemented the 4MLD from the EU
Money laundering regulations 2016 and JMLSG guidance
27
When must customer due diligence be carried out according to the money laundering regulations 2016
When the business establishes a relationship Carries out an occasional transaction Suspects money laundering or terrorist financing Doubts about previously collected information
28
When is identification not needed according to the money laundering regs 2016
On a life policy where annual premium is less than £1000 or single premium is less than £2500 A pension contract with no surrender value A pension contract where members can't assign their rights
29
What is needed to identify non-individuals for anti money laundering purposes
Company registration number
30
What are the powers of enforcement for suspected money laundering
Enter premises, take copies, impose appropriate civil penalties Personally accountable directors or partners could face 2 years in prison and a. Fine
31
Who does the money laundering reporting officer of a firm need to report to
NCA
32
Who must staff report suspicions money laundering activity to
Money laundering reporting officer
33
What must a firm report annually in relation to anti money laundering
Review of systems and processes
34
How long must a firm keep records of clients identity verification for
5 years from end of customer relationship