Topic 17

Question 1

What is the Financial Services and Market Act (FSMA) 2023

Answer 1

1, a smarter regulatory framework
2, the designated activities regime (DAR)
3, oversight of critical third parties (CTPs)
4, digital settlement assets (DSAs)
5, a financial promotions gateway
6, improved access to cash

Question 2

Who is responsible for FSCS - Financial Services Compensation Scheme?

Answer 2

The PRA and the FCA

Question 3

Who is responsible for FOS - Financial Ombudsman Service?

Answer 3

The FCA

Question 4

Who is responsible for FOS - Financial Ombudsman Service?

Answer 4

The FCA

Question 5

What is in the FCA handbook?

Answer 5

Rules
Guidance

Question 6

Areas of the FCA Handbook with greatest interest to mortgage and financial advisors

Answer 6

1, high-level standards
2, prudential standards
3, business standards
4, regulatory processes
5, redress
6, specialist sourcebooks

Question 7

What areas are covered in the High-level standard part of the FCA’s Handbook?

Answer 7

1 - Code of conduct
2 - Threshold conditions
3 - Statement of principle and code of practice for approved persons
4 - ‘Fit and proper’ test for employees and senior personnel
5 - senior management arrangements, systems and controls
6 - Principles for Businesses
7 - Financial stability and market confidence sourcebook
8 - General provisions
9 - Fees manual
10- Training and competence

Question 8

What is the 12th FCA Principle for Business?

Answer 8

Consumer Duty - A firm must act to deliver good outcomes for retail customers.

Question 9

What are the three cross cutting rules required by firms with regard to Consumer Duty?

Answer 9

1, act in good faith
2, avoid causing for seeable harm
3, enable and support retail customers to pursue their financial objectives