Revision Express: Incorrect Answers Flashcards
If a firm adopts the alternative approach to handling client money, at what MINIMUM frequency must it carry out internal client money reconciliations?
Each business day
When holding client money or investments for professional clients subject to the UK MiFID custody / client money rules, firms have to provide:
A summary of the steps the firm has taken to protect the client’s money
How would a trading venue typically become aware of a suspicious transaction?
When arranging or executing a transaction
The Unfair Terms in Consumer Contracts Regulations 1999 allows the FCA to
apply for a court injunction to prevent a firm from using an unfair term against an existing customer
Which of the following must be disclosed to a retail client when holding
designated investments or client money subject to MiFID?
A The name or names of nominee companies used
B Details of any banks used to hold or transmit client money
C Details of any investor compensation scheme applicable
D Details of the national law applicable
C Details of any investor compensation scheme applicable
One of the aspects of the purpose of the Disclosure Rules is to?
Set out specific circumstances in which an issuer can delay the public
disclosure of inside information
When carrying out a reasonable assurance Client Assets Report the auditor must take into account?
the firm’s own risk assessment
Who is responsible for the completeness and accuracy of information and the appropriateness of recommendations when a MiFID firm relies on a third party firm?
The third party firm only
Financial firms which prepare research recommendations have to comply with detailed standards in relation to presentation and disclosure in order to ensure that……….
Such recommendations are fairly presented
In order to satisfy their terrorist financing prevention obligations, firms must
retain customer due diligence records for a MINIMUM of
5 years
Where domestic transactions take place on systems run by the London Stock
Exchange (LSE), transaction reports for settlement purposes are required via
CREST by what LATEST time on each business day?
8.00pm
Which of the following is TRUE for a regulated firm under Money Laundering
rules and regulations?
A Staff must be trained to recognise and deal with suspicious transactions
B Penalties will not be levied if procedures to produce an audit trail are in
place
C Records must be kept for a minimum of 3 years from the end of the client’s
relationship
D Offences are subject to adjudication by the Financial Conduct Authority
A Staff must be trained to recognise and deal with suspicious
A firm has received an instruction from a third party IFA.
When must the firm report the transaction to the client following receipt?
By the end of the following day
4 To successfully apply for exemption from the qualification requirements
prescribed by the training and competence regime, an employee must have
relevant overseas experience covering what MINIMUM period?
Three years
What is the MAXIMUM level of settlement discount normally available in relation to an enforcement penalty imposed by the FCA?
30%
