Regulatory Environment

Question 1

SYSC Requirements

Answer 1

• SYSC 4 GENERAL REQUIREMENTS - sound governance, persons directing biz must be of good repute and sufficiently experienced, senior personnel to receive frequent written reports on compliance and internal audit
• SYSC 5 EMPLOYEES, AGENTS & OTHER RELEVANT PERSONS - Skills, knowledge & expertise, Segregation of duties, Awareness of procedures, Monitoring.
• SYSC 6 COMPLIANCE, AUDIT & FINANCIAL CRIME
• SYSC 7 RISK CONTROL, SYSC 12 GROUP RISK SYSTEMS & CONTROLS
• SYSC 8 OUTSOURCING
• SYSC 9 RECORD-KEEPING
• SYSC 10 CONFLICTS OF INTEREST
• SYSC 10A RECORDING OF TELEPHONE CONVERSATIONS & ELECTRONIC COMMS - market abuse

Question 2

Competition & Markets Authority (CMA)

Answer 2

AIM - make markets work well for consumers, businesses & the economy.
5 strategic goals:-
1) Deliver effective enforcement, protect consumers, educate businesses.
2) Extend competition frontiers - use markets regime to improve the way competition works.
3) Refocus consumer protection.
4) Achieve professional excellence - manage each case efficiently, transparently & fairly.
5) Develop integrated performance.

Question 3

Supervisory Principles

Answer 3

1. FORWARD LOOKING - pre-empt poor conduct.
2. FOCUS ON STRATEGY & BUSINESS MODELS
3. CULTURE & GOVERNANCE
4. FOCUS ON INDIVIDUAL AS WELL AS FIRM ACCOUNTABILITY.
5. PROPORTIONATE & RISK-BASED
6. TWO-WAY COMMUNICATION - FCA engage with consumers, firms, market participants.
7. CO-ORDINATED - FCA teams work closely with each other, other regulatory bodies, overseas regulators.
8. PUT RIGHT SYSTEMIC HARM

Question 4

CISI Code Of Conduct Principles

Answer 4

1. PERSONAL ACCOUNTABILITY
2. CLIENT FOCUS
3. CONFLICT OF INTEREST
4. RESPECT FOR MARKET PARTNERS
5. CONTINUE TO LEARN
6. AWARE OF CAPABILITIES
7. RESPECT OTHERS & THE ENVIRONMENT
8. SPEAK UP & LISTEN UP