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R01 > The Regualtory Advice Framwork > Flashcards

The Regualtory Advice Framwork Flashcards

1
Q

How did RDR affect advice

A

It removed the commission bias
Makes advice routes clearer and
improves professional standards

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2
Q

What does the national occupational standards define in relation to unregulated generic financial advice

A

Defines the boundaries

Core skills required and competencies of those who carry out GFA

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3
Q

What did the thoressen review of GFA find

A

A national, impartial money guidance service should be established
This should be multichannel
FCA should be responsible for it

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4
Q

What is the definition of financial capability

A

Being able to manage money, track finances, plan ahead, make informed decision and stay up to date

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5
Q

What did MAS replace in 2011

A

Consumer financial education body

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6
Q

What service is available for people to help decisions regarding pension freedoms

A

Pension wise

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7
Q

Which services will be combined in 2018

A

Mas, pension wise and the pensions advisory service

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8
Q

What is the 1st customer outcome

A

Consumers can be confident they are dealing with firms where the fair treatment of customers is central to the culture

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9
Q

What is the 2nd (products) customer outcome

A

Products and services marketed and sold in the retail market are designed to meet the needs of identified consumer groups and targeted accordingly

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10
Q

What is the 3rd (informations) customer out one

A

Customers are provided with clear unfit action and are kept appropriately informed before, during and after the point of sale

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11
Q

What is the 4th customer outcome (advice)

A

Where customers receive advice the advice is suitable and takes account of their circumstances

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12
Q

What is the 5th (products) customer outcome

A

Consumers are provided with products that perform as they have been led to expect

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13
Q

What is the 6th (barriers) customer outcome

A

Consumers do not face unreasonable post-sale barriers imposed by firms to change products, switch provider, submit a claim or make a complaint

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14
Q

What must be included in an initial disclosure document

A

Info about the status, nature of the service (restricted or independent) and how they are paid (charging structure)

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15
Q

What are tied agents

A

Can only advise on one marketing groups products

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16
Q

What is the definition of an independent advisor

A

Must offer unbiased, unrestricted advice which is not influenced by product provider or remuneration

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17
Q

What is the minimum level of qualification for a financial advisor

A

Level 4

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18
Q

What products were included in stakeholder products

A

Short term deposit accounts
Medium term investments
,King term pension product

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19
Q

When were stakeholder products introduced

A

6th April 2005

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20
Q

How are customers advised on stakeholder products

A

Basic advice based on answers to set questions, not including advice on fund choice, other investment or contribution level

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21
Q

What is the overriding consideration for communicating with clients

A

Clear fair and not misleading

22
Q

When do cobs rules not apply to communications

A

When it is to only 1 person
Personal quotations and illustrations
When only includes a logo, short description of activities, the name of firm or a contact. Point

23
Q

What is real time communication

A

Done in person, on the phone or other interactive communication

24
Q

Who must check nrt financial promotions

A

Individual th appropriate level of expertise eg compliance officer

25
Q

How long must nrt FP records be kept

A

Indefinitely for pension things
6 years for life and pension contracts
5 years in all other cases for mifid
3 years in all other cases for non mifid

26
Q

What must FP records contain

A

Copy of the item and name of person who checked it

27
Q

What must firms take care to ensure with regards to real time FP

A

Cfnm
Make clear purpose of promotion, identify themselves and their firm at start
Must check whether they want to proceed
Must give recipient a point of contact
Don’t communicate at unsocial hour without permission

28
Q

What is the proper name for cold calling

A

Unsolicited real time FP

29
Q

What rules are online advertising subject to

A

E-commerce directive

30
Q

What should you do if a client refuses to share some info

A

Record this no consider whether to continue doing business

31
Q

What should you update each time you meet with a client

A

Fact find

32
Q

What can you do if the client instructs a transaction you don’t think is suitable

A

Decline

Proceed recording disagreement on the fact find

33
Q

For which products must product providers provide product disclosures for the client

A

Packaged products

34
Q

When must a product disclosure document be given to a client

A

Before the application form is complete

35
Q

What must a product. Disclosure include (8)

A 
Nature of investment
Aims
Risk factors 
Terms of investment
Cancellation rights 
Compensation agreements 
Complaint procedure 
Solvency 2 info
36
Q

What must projections be based on

A

Reasonable assumptions and supported by date

37
Q

What should the initial disclosure of a pure protection life policy include

A

Information required by solvency II

38
Q

When was the financial advice market review

A

August 2015

39
Q

What were the recommendations of the financial market review revolved around

A

Providing affordable advice
Increasing access to advice
Addressing industry concerns about future liabilities and redress

40
Q

What was set up to take forward the recommendations of the financial advice market revie

A

The financial advice working group

41
Q

What are the 3 types of client in investment business

A

Retail
Professional
Eligible counterparty

42
Q

What is a client agreement aka

A

Terms of business

43
Q

How long must client records be kept

A 
The longest of 
\: 
5 years
Duration of relationship 
Or for pension transfer, opt out or FSAVCs indefinitely
44
Q

What does best execution mean in relation to stocks and shares

A

Must take reasonable steps to obtain the best possible result for a client order

45
Q

What is execution only

A

Investor states exactly what they want without asking for advice

46
Q

What are insistent clients

A

They act contrary to the advice given

47
Q

What products have a 14 day cancellation right (6)

A 
Cash ISA
Collective investment
Transfer of a ctf
Opening ot transferring an ISA 
Enterprise investment scheme 
Designated investments when sold at distance
48
Q

What products have 30 day cancellation rights

A

Life policy
Stakeholder or personal pension
Pension transfers

49
Q

When does the time start for cancellation rights

A

The date of conclusion of the contract

50
Q

In what circumstance can you take an ongoing advisor charge

A

If providing an ongoing service

51
Q

How often should review meetings take place

A

1 year

R01 (10 decks)

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