RO1 - S.6 - Principles & Rules as set out in the regulatory framework Flashcards
When would a firm be exempt from applying for Part 4a permission for regulatory authorisation to operate?
When they are an Appointed Representative of a network, they operate on the networks license
what does SM&CR stand for?
Senior Management & Certification Regime
What are the three categories the FCA use for SM&CR firms?
Enhanced firms - highest impact & first to embed
Core firms - mass market firms and second to embed
Limited scope firms - lightest touch regulation needed and last to embed SM&CR
What did the SMF functions replace when SM&CR was brought in?
Controlled Functions
What are the three different types of SMFs under SM&CR?
1) Governing (CEO SMF1)
2) Required by statute ( SMF16 Compliance oversight)
3) Systems & controls (Internal Audit head)
Who does the Certification regime apply to?
Material risk takers within the firm e.g financial advisers
Who does the Senior Managers Regime apply to?
Most senior members in the firm with a statutory duty of responsibility
Who do senior managers need to be pre approved by before carrying out their roles?
The FCA
Who is required to identify and assess those on an ongoing basis who are subject to the certification regime?
The authorised firm
Who do the conduct rules apply to?
The majority of staff within an authorised firm
Which rules apply to an Appointed Representative who works for an SM&CR firm?
The APER (Approved Persons Regime)
What is a tied agent?
An Appointed Representative working for an authorised firm
What is a controlled function?
A certified role equivalent for ARs, for advisers undertaking a customer facing controlled function (CF30) but assessed under APER as opposed to SM&CR
What are the 3 key areas of SM&CR?
1) Senior Managers Regime
2) Certification Regime
3) Conduct Rules
For how long to Non-Mifid firms have to keep records?
3 years
For how long do MIFID firms have to keep records for?
5 years
For what types of products do records have to be kept indefinitely?
Pension Transfers & opt out, Free standing additional voluntary contributions
Through what system do firms have to provide FCA reports through?
GABRIEL
When do reports have to be sent in to the FCA?
Within 30 days of the reporting date
Give 2 examples of when the FCA would need to be immediately notified
1) Insolvency
2) Core changes to key personnel
3) Significant breach of principles
4) Incorrect information submitted to regulator
How many hours of CPD do advisers need to complete a year, how much of this should be structured?
35 hrs, 21 should be structuredq
How long do new advisers have to pass the appropriate level 4 qualification when entering the industry?
48 months
For how long do firms need to keep records for AML training?
5 years
What 2 pieces of information need to be obtained as a minimum before onboarding clients?
their name and their adress
