Principles And Rules Set Out In The Regulatory Framework

Question 1

What is general prohibition

Answer 1

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

Question 2

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

Answer 2

The upper tribunal

Question 3

Who is exempt from authorisation

Answer 3

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

Question 4

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

Answer 4

Apply to PRA and it is then assessed jointly by FCA

Question 5

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

Answer 5

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

Question 6

What do you get from the FCA when they grant permission

Answer 6

Scope of permission notice

Question 7

What are controlled functions

Answer 7

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

Question 8

What are the 4 significant influence functions

Answer 8

Governing functions
Required functions
Systems and controls functions
Significant management functions

Question 9

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

Answer 9

Customer function

Question 10

What are the responsibilities of regulated firms

Answer 10

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

Question 11

What are the 2 categories of PRA senior management functions

Answer 11

Executive functions

Oversight functions

Question 12

What activities can appointed representatives undertake

Answer 12

Advising on investments

Arranging deals in investments

Question 13

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

Answer 13

1

Question 14

How many principals can a mortgage business AR have

Answer 14

1 for for each class of business

Question 15

How many principals can an insurance AR have

Answer 15

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

Question 16

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

Answer 16

All complaints

Question 17

Which records must be kept indefinitely

Answer 17

Pension transfers, pension opt outs and FSAVCs

Question 18

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

Answer 18

5 years

Question 19

Which system is used for regular reporting to the FCA

Answer 19

GABRIEL

Question 20

What must firms report annually to the FCA

Answer 20

Detailed info on capital

Question 21

How often must firms report complaints data

Answer 21

Twice a year

Question 22

What does guidance on notifications give in terms of its expectations

Answer 22

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

Question 23

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

Answer 23

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

Question 24

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

Answer 24

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

Question 25

Name 4 criminal offences under the proceeds of crime act 2002

Answer 25

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

Question 26

What uk regulations implemented the 4MLD from the EU

Answer 26

Money laundering regulations 2016 and JMLSG guidance

Question 27

When must customer due diligence be carried out according to the money laundering regulations 2016

Answer 27

When the business establishes a relationship
Carries out an occasional transaction
Suspects money laundering or terrorist financing
Doubts about previously collected information

Question 28

When is identification not needed according to the money laundering regs 2016

Answer 28

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

Question 29

What is needed to identify non-individuals for anti money laundering purposes

Answer 29

Company registration number

Question 30

What are the powers of enforcement for suspected money laundering

Answer 30

Enter premises, take copies, impose appropriate civil penalties
Personally accountable directors or partners could face 2 years in prison and a. Fine

Question 31

Who does the money laundering reporting officer of a firm need to report to

Answer 31

NCA

Question 32

Who must staff report suspicions money laundering activity to

Answer 32

Money laundering reporting officer

Question 33

What must a firm report annually in relation to anti money laundering

Answer 33

Review of systems and processes

Question 34

How long must a firm keep records of clients identity verification for

Answer 34

5 years from end of customer relationship