Topic 12 Flashcards
The FCA handbook consists mainly of rules and guidance. What disciplinary action can the FCA take if a firm ignores the guidance?
No action
In which part of the FCA Handbook would you find the requirements applying to businesses that are active in the consumer credit arena?
ONC sourcebook contains the provisions applying to businesses who offer
Which of the following isNOTone of the pillars on which the FCA’s supervision model is based?
Reason:
The FCA supervision model is based on three pillars:
Firm systematic framework - preventative work through a structured conduct assessment of firms
Event driven work - dealing faster and more decisively with problems that have happened or are emerging and making sure customers receive redress
Thematic work looking at issues and products - fast intensive campaigns based on sectors of the market or products that are putting customers at risk
The FCA details 11 Principles for Businesses. Which of the following statements most accurately describes the FCA’s requirements in respect of relations with regulators?
The relevant principle states that a firm should be open and co-operative in their dealings with the regulator and must disclose anything that the FCA would reasonably expect notice of.
An individual performing which of the following roles will be subject to the Certification Regime, rather than the Senior Managers Regime?
Financial advisor
Reason:
Roles covered by the Certification Regime include:
Significant management functions
Functions subject to qualifications such as financial advisers and mortgage advisers
Client dealing functions
Material risk takers
To what extent does the Financial Conduct Authority have responsibility for prudential regulation?
Reason:
The FCA principle of management and control states that firms should take reasonable care to organise and control their affairs responsibly and effectively with adequate risk management systems in place.
Which of the FCA’s Principles for Businesses includes detail about the need to provide customers with fair treatment?
Reason:
Of the 11 Principles for Businesses, the one that is relevant to the fair treatment of customersis customers’ interests. This states that a firm should pay due regard to the interests of its customers and treat them fairly.
Which statement isFALSEregarding external auditors?
External auditorsare normally firms of accountants (not lawyers). All other statements are correct.
The purpose of a ‘regulatory sandbox’ is to enable:
The purpose of a ‘regulatory sandbox’ it to enable businesses to experiment with innovative products, services, business models and delivery mechanisms without being subject to the normal regulatory consequencesof engaging in the activity.
