R01 the FCA Handbook 3

Question 1

What is Block 2 of the FCA Handbook?

Answer 1

Prudential standards.

Question 2

What’s in Block 2 of the FCA handbook?

Answer 2

Regulation on financial management of firms and capital adequacy

Question 3

What is the Capital Resource Requirement (CRR)

Answer 3

The minimum capital a firm must hold

Question 4

What is the Investment Firms Prudential Regime (IFPR)

Answer 4

Outlines risk assessment and stress testing for capital adequacy for large firms

Question 5

What is the Capital Resource Requirement for Exempt MiFID firms?

Answer 5

£20,000

Question 6

What does the MIFID prudential Sourcebook cover? (MIFIDPRU)

Answer 6

Financial requirements for MiFID firms

Question 7

What does MIPRU sourcebook cover?

Answer 7

mortgage/home finance firms

Question 8

What does INSPRU source book cover?

Answer 8

Insurance firms

Question 9

What is Block 3 of the FCA handbook?

Answer 9

Business Standards

Question 10

What does COBS stand for

Answer 10

Conduct of business source book

Question 11

What does ICOBS stand for

Answer 11

Insurance conduct of business source book

Question 12

What products does ICOBs regulation cover

Answer 12

General insurance (car, house), Pure protection (critical illness) and payment protection insurance

Question 13

What is a record of suitability called in an advised sale?

Answer 13

A demands and needs statement

Question 14

What is an initial disclosure document (IDD)?

Answer 14

Explains the basis of advice and any restrictions

Question 15

How is the pensions regulator funded

Answer 15

By a levy

Question 16

If a company does business online what are they subject to

Answer 16

FCA e-commerce directives

Question 17

Is the consumer credit covered by the Financial Osbudsmund?

Answer 17

Yes

Question 18

Is an unincorporated associate covered by the consumer credit act?

Answer 18

Yes, as well as a partnership with 3 or less members

Question 19

How long does a firm have to reply to a data request?

Answer 19

1 month

Question 20

How many treating customer fairly objectives are there?

Answer 20

6

Question 21

How long does a firm have to acknowledge a compliant?

Answer 21

Within a reasonable time

Question 22

How often should a firm test it’s capital adequacy?

Answer 22

Annually

Question 23

Who regulates the sale of lifetime mortgages?

Answer 23

The FCA