questions - mix of topics Flashcards
Someone decided to invest in cumulative preference shares as they:
Wanted some certainty regarding future dividend payment
For what minimum period of time must the training and competence records of an individual carrying out non-MiFID business be retained after they have stopped carrying out regulated activities?
3 years
Under the FCA Senior Managers Regime, where a senior manager is found guilty of reckless misconduct, what maximum prison sentence may apply?
7 years
Martin has set up a trust fund for the benefit of his three grandchildren and has appointed two trustees with discretion to exercise their powers. In these circumstances, which of the following is true?
Both trustees must agree, before exercising their discretionary powers
A new gilt issue has received wide publicity in the financial press, in which it has been referred to as ‘medium-dated’. However, the UK Debt Management Office has described it as ‘short-dated’. It will therefore be for which of the following terms?
6 years
If Chris and Kim opt for a joint repayment mortgage, the most suitable way to ensure that the loan will be repaid if either of them dies is by:
taking out a mortgage protection assurance policy
A building society has liabilities of £900m. What maximum amount, if anything, is the building society permitted to raise on the wholesale markets?
£450m
(Building societies can raise funds on the wholesale markets up to 50% of the value of their liabilities)
On a with-profits endowment policy, what is a reversionary bonus?
- A payment that is declared regularly and once allocated to the policy, cannot be removed
- A reversionary bonus is not pre-set; it is dependent on investment performance
A chargeable lifetime transfer is made, and the donor is informed that inheritance tax will be payable:
Immediately
A sole trader with no employees may be subject to which class, or classes, of National Insurance contributions?
Class 4 only
What is Gross Domestic Product? A measure of the value of:
goods and services produced within a country over a specified period of time.
How is property defined under the Third Money Laundering Directive (2005) in relation to money laundering?
Assets of every kind, including legal documents giving title to such assets.
In respect of mortgage advice, which of the following pieces of information is not required as part of the initial disclosures under MCOB 4?
Arrears arrangements
David has arranged a life policy for his customer, Jane. Assuming that Jane does not require immediate cover and that details of suitability are not provided orally, what is the latest date that the suitability report can be sent to Jane?
Before conclusion of the transaction.
Under the Fourth Money Laundering Directive, beneficial owners of legal entities are defined as those who own or control what minimum percentage of the legal entity?
25%
Simon has undergone his initial training as an investment adviser but has not yet passed the regulatory module of an appropriate qualification. Under what circumstances might he be allowed to advise customers about regulated products, if at all?
Under no circumstances can he offer advice to customers.
Within an authorised firm, the Financial Conduct Authority considers that responsibility for ensuring the fair treatment of customers lies with:
the firm’s senior management.
When a pension transfer specialist leaves that role or leaves the firm, for what minimum period of time must records of their competence in this field be retained by the firm?
Indefinitely.
