The FCAs Use Of Principles And Outcomes-based Regulation Flashcards
What does HLS PRIN1 set out
A firm must conduct its business with integrity
What does HLS PRIN2 state
Must conduct business with skill, care and diligence
What does HLS PRIN3 state
A firm must take reasonable care to organise and control its affairs responsibly and effectively with adequate risk management systems
What is HLS PRIN4
Must maintain adequate resource
What is HLS PRIN5
A firm must observe standards of market conduct
What is HLS PRIN6
A firm must pay due regard to the interests of customers and treat them fairly
What is HLS PRIN8
A firm must manage conflicts of interest fairly between both itself and its clients and between two of its clients
What is HLS PRIN9
Must take reasonable care to ensures suitability of advice and discretionary decisions for any customer who is entitled to rely upon its judgement
What is HLS PRIN 10
Must arrange protection for client assets when responsible for them
What is HLS PRIN11
A firm must deal in an open and cooperative way and disclose anything to the regulator it would reasonably expect to know
What are the FCA principles founded in
Ethics
What are the key drivers of corporate culture (6)
Leadership Strategy Decision making Controls Recruitment and training and competence Reward
What are the HLS principles that apply to those carrying out a controlled function
Statement of principle and code of practice for approved persons
Which principles under the HLS statements of principle and code of practice for approved persons apply only to accountable higher management functions
5-7
What are the 7 statements of principle for approved persons
Integrity
Skill care and due diligence
Market conduct
Open and cooperative when dealing with regs
Business should be organised so it can be controlled effectively
Skill care and due diligence in management
Compliance
What is the criteria for approved persons fit and proper test (FIT)
Honesty, integrity and reputation
Competence and capability
Financial soundness
Who should own a firms conflict of interest policy
Member of the board or senior management
When did senior managers certification regime come into effect
March 2016
What are the key features of the senior managers regime under SMCR
Each manager should have a statement of responsibility
What are the key features of the certification regime under SMCR
Applies to. Material risk takers and required them to be assessed as fit and proper
What conduct rules all,y to almost all staff
COCON
How did SMCR affect remuneration
Encourages better risk management
How did SMCR affect whistleblowing
Strengthens controls
When did the senior insurance managers regime come into effect
7 March 2016
What were the 3 key features of senior insurance manager regime
Governance maps
Scopes of responsibility
Conduct rules
