The FCA handbook Flashcards
What financial recourses are financial firms subject to?
Must maintain brought resources to cover risks that that result from the way in which they conduct their business
On what basis, did the capital requirements directive decided capital into three tiers?
Based on loss absorbency and performance of capital
Why does the FCA have rules regarding inducements under COBS2
To ensure all intermediaries as not swayed by any incentives
As a result of the Mortgage Credit Directive, firms but now provide a binding mortgage offer and a minimum reflection period of how May days?
7 days
Why is the FAC concerned with a persons close links under threshold conditions within the FCA handbook?
To ensure they will not prevent the FCA’s effective supervision of the person
What fees are due from authorised firms?
Application and special project fees
Financial ombudsman service
Financial services compensation scheme
money and pension services scheme
Firms must ensure they maintain resources to cover risks they carry out as required by:
The capital requirements directive
Regulated larger firms are required to carry out a ________________ and _____________ as required by the Aprils requirements directive to ensure they maintain resources to cover risks.
Risk assessments and stress testing scenarios
What is MIPRU?
Sets out the professional indemnity insurance and CRRs for home finance providers and intermediaries and general insurance intermediaries
If a provider gives any benefits or inducements to an intermediary how long must they keep records for?
5 years
How does the ICOBS categorise insurance products?
General insurance
Pure protection
Payment protection insurance
Under ICOBS rules, who is responsible for making sure an intermediary is authorised to deal with an insurer?
The insurer must make sure that any intermediary it deal with is authorised
If a firm passes a mortgage leads to an authorised person for a fee, does that firm require FCA authorisation?
No authorisation is required as an introducer as they are not advising the client
What is specifically exempt from the consumer credit act 1974, and who can apply to be exempt?
Building societies are specifically exempt
Bodies where loans are secured on land
The FCA is required to notify a person when they are the subject of an investigation. Under which circumstances would the FCA not have an obligation to notify the person?
Investigations on:
Possible insider trading
Market abuse
Misleading statements
How does the FCA determine the level of periodic fee to charge an authorised firm?
Based on the areas the firm has permission to advise on and the income the firm received under each product area
How long it the cooling off period for a sale to rent back agreement?
14 days
Under the Mortgage credit directive what is the name given to a product disclosure document?
European standardised information sheet
Who is subject to client money rules?
intermediary firms who receive and hold money on behalf of clients
If the FCA has suspicions about a firm, can an enforcement officer enter premises and remove original documents from a firm without permission?
Only if enforcement officer has a warrant to enter premises and take documents by force if necessary
How do the FCA and Compensation and Markets Authority work tog their in considering fairness of standard terms in financial services contracts?
If the FCA considers the CMA better placed to deal with a matter they will then pass the case on
