The FCA handbook Part 2 Flashcards
Who does ‘block 1: high level of standards’ of the FCA hand book relate to?
All firms, senior managers and approved persons
What are the minimum conditions which firms must satisfy at all time to retain Part 4A Permission?
Location of offices
Effective supervision
Appropriate resources
Suitability
Business model
What is PRIN?
FCA Principles for Businesses which are fundamental obligations for all authorised firms
What does SYSC stand for?
Senior Management arrangements, Systems and Controls
How May remuneration policies under remuneration code within SYSC?
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What does FINMAR do?
Financial Stability and Market Confidence provides guidance in relation to short selling in promoting FCA’s statutory objectives of protecting consumers and enhancing financial integrity
What block is T&C in?
Training and compliance is in the High Level Standards Block
How is the FCA funded?
By fees levied from financial services industry - joining fees, annual periodic fees and special project fees
What is Block 2 of the FCA handbook?
Prudential Standards
What is Block 3 of the FCA handbook?
Business standards - requirements of firms business operation / day to day business conduct relevant to most firms
What does COBS stand for?
Code of Business Sourcebook
What is within the Conduct of Business Sourcebook?
Provider Inducements
Indirect benefits
Charges and disclosures product literature
What are the three categories of lCOBS?
General insurance
Pure protection
Payment protection insurance
What does MCOB stand for?
Mortgage Conduct of Business
When is a mortgage contract not regulated?
When the borrower is a company - company buy to let
What is the difference between information and advice?
Information - is accurate and neutral al with no comment or opinion of its merits compared to other products
Advice - involves giving an opinion and suitability of a particular product to a particular customer
What is equity release?
A home reversion or lifetime mortgage where someone sells part or all of their home to release equity but still get to live there
What is sale and rent back?
House is sold and the seller is allowed to live in the house, usually for a maximum of 5 years
When are firms required to complete a CMAR?
Firms are required to complete a Client Money and Assess Return when they hold over £1m plus or assets £10m (they must complete these monthly)
What does MCOB stand for?
Mortgage Conduct of Business Rules
What mortgage contract is not regulated?
A buy to let mortgage from a company
What is the difference between information and advice?
Information - accurate and neutral and no comment or opinion of its meters compared to other products
Advice - involves giving an opinion and suitability of a particular product to a particular consumer
What is equity release?
Home reversion or lifetime mortgage which realises equity from the home into a lump sum cash amount - they are allowed to remain in the house until they die or move into full time care
What is sale and rent back?
Quick sale of a house they can remain in the house and pay rent but this would be for a term and usually a maximum of 5 years
What firms are required to complete a CMAR?
Firms with client money of £1m plus or assets of £10m plus must complete a monthly Client Money and Asset Return
What is block for of the FCA handbook?
Regulatory Process
What is Block 5 of the FCA hand book?
Redress, complaints and compensation
Regulators busy deal with complaints within _____ weeks or arrange timetable if longer
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