Principles And Rules Set Out In The Regulatory Framework Flashcards
What is general prohibition
Offence to carry out regulated activity unless a person is exempt or authorised
To whom can you. Appeal if authorisation is rejected by the FCA
The upper tribunal
Who is exempt from authorisation
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
If a firm requires authorisation from both PRA and FCA, how do they apply
Apply to PRA and it is then assessed jointly by FCA
What is the statutory time,I it for the FCA to decide on granting approval
6 months for a complete application or 12 months for an incomplete application
What do you get from the FCA when they grant permission
Scope of permission notice
What are controlled functions
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
What are the 4 significant influence functions
Governing functions
Required functions
Systems and controls functions
Significant management functions
What is the 5th control function that isn’t a significant influence function
Customer function
What are the responsibilities of regulated firms
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
What are the 2 categories of PRA senior management functions
Executive functions
Oversight functions
What activities can appointed representatives undertake
Advising on investments
Arranging deals in investments
How. Any principles can an AR carrying out investment business have
1
How many principals can a mortgage business AR have
1 for for each class of business
How many principals can an insurance AR have
Any number but need to all enter into a multi-principal agreement
In a multi-principal agreement for insurance ARs, what must the lead principal handle
All complaints
Which records must be kept indefinitely
Pension transfers, pension opt outs and FSAVCs
How long must life policy records and pension contracts be kept for
5 years
Which system is used for regular reporting to the FCA
GABRIEL
What must firms report annually to the FCA
Detailed info on capital
How often must firms report complaints data
Twice a year
What does guidance on notifications give in terms of its expectations
Significant fraud crime Major breach Insolvency Changes of name, status, address etc If accidentally given the wrong info to FCA
How long must training records be kept for mifid, non mifid and pensions specialists
5 years, 3 years and indefinitely after the cessation of employment
What are the 3 steps in money laundering and briefly describe each
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
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
What uk regulations implemented the 4MLD from the EU
Money laundering regulations 2016 and JMLSG guidance
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
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
What is needed to identify non-individuals for anti money laundering purposes
Company registration number
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
Who does the money laundering reporting officer of a firm need to report to
NCA
Who must staff report suspicions money laundering activity to
Money laundering reporting officer
What must a firm report annually in relation to anti money laundering
Review of systems and processes
How long must a firm keep records of clients identity verification for
5 years from end of customer relationship
