RO1: Chapter 10

Question 1

What does PRIN stand for?

Answer 1

Principles for Business

Question 2

What are the 11 Principles for Business?

Answer 2

• Integrity
• Skill care and due diligence
• Management and control, financial prudence
• Market conduct
• Customers’ interests
• Communications with clients
• Conflicts of interest, Customer’s relationships of trust
• Client’s assets
• Relations with regulators

Question 3

If a firm becomes aware that there has been breaches to PRIN who should report this to the FCA and when?

Answer 3

Compliance office must inform the FCA ASAP

Question 4

What is Outcomes-based regulation?

Answer 4

Regulation based on making judgements of what may happen in the future

Question 5

What are the Cultural Drivers?

Answer 5

• Leadership
• Strategy
• Decision making and challenge
• Controls
• Recruitment and training and competence
• Reward.

Question 6

What are the 3 requirements to pass the Fit and Proper Test?

Answer 6

• Honesty, integrity, and reputation = Employment record, past dealings with regulators and criminal and civil proceedings.
• Competence & capability = Meet the FCA requirements for training and competence
• Financial soundness = Individual should be financially sound in terms of current and past status.

Question 7

For certified roles who conducts the Fit and Proper test?

Answer 7

The firm who employs the individual