Topic 17 Flashcards
The Financial Conduct Authority’s single strategic objective is to:
A. govern organisations that manage investments on behalf of other people.
B. ensure that relevant markets work well so that customers get a fair deal.
C. regulate the marketing and sale of all life assurance products.
D. oversee the administration of all types of investment business.
B. ensure that relevant markets work well so that customers get a fair deal.
Individuals who are allowed to carry out certain functions in relation to a firm’s regulated activities are often referred to as:
A. authorised persons
B. approved persons
C. appointed persons
D. appropriate persons
B. approved persons
The second key Principle of Business as defined by the regulator is that firms must act with skill, care and:
A. control
B. integrity
C. diligence
D. honesty
C. diligence
A situation where individuals use information about a company that is not generally available to deal for their own financial advantage’ is a definition of:
A. insider dealing
B. best execution
C. market manipulation
D. money laundering
A. insider dealing
When did mortgages become regulated?
A. October 2004
B. January 2005
C. April 2006
D. June 1998
A. October 2004
Which of the following is NOT one of the FCA’s operational objectives?
A. Reducing the scope for financial crime
B. Protecting and enhancing the integrity of the UK financial system
C. Protecting competition in the interests of consumers
D. Securing an appropriate degree of protection for consumers
A. Reducing the scope for financial crime
Which one of the following is NOT one of the Financial Conduct Authority’s Principles for Business with which a firm must comply?
A. Conduct its business with integrity
B. Communicate with customers in a clear manner
C. Observe proper standards of market conduct
D. Maintain an independent compliance function
D. Maintain an independent compliance function
Knowingly giving out false information to influence the price of shares for personal gain is known as:
A. money laundering
B. market manipulation
C. best execution
D. insider dealing
B. market manipulation
In seeking to promote competition, the FCA uses its power to ensure all of the following except which of the following:
A. customers are engaged to drive competition
B. there are no undue barriers preventing new providers from entering the market
C. offering ‘light touch’ regulation for providers that show a strong record in product innovation
D. preventing any single firm from dominating the market
C. offering ‘light touch’ regulation for providers that show a strong record in product innovation
What was the main driver for the Financial Services and Markets Act 2000?
A. Increasingly high levels of fraud
B. The lack of compliance within the banking industry
C. Lack of consumer confidence in existing provisions
D. The need for integrated legislation and regulation
D. The need for integrated legislation and regulation
One of the operational objectives of the Financial Conduct Authority is to:
A. oversee the activities of financial organisations such as clearing houses, the London Stock Exchange and Lloyd’s.
B. provide appropriate customer protection.
C. regulate mortgage lending and enforce the Mortgage Code.
D. maintain market confidence and recommend suitable investments.
B. provide appropriate customer protection.
Who has prudential responsibility for deposit takers and insurers?
A. Financial Policy Committee
B. Financial Conduct Authority
C. Financial Services Authority
D. Prudential Regulatory Authority
D. Prudential Regulatory Authority
There are three main areas of financial crime that the FCA seeks to control. Which one of the following is the exception?
A. Mis-selling investments
B. Money laundering
C. Fraud and dishonesty
D. Criminal market conduct
A. Mis-selling investments
The FCA has powers under the Competition Act 1998 and the Enterprise Act 2002, meaning in respect of competition, it is a concurrent regulator with the:
A. Competition Commission
B. Office of Fair Trading
C. PRA
D. Competition and Markets Authority
D. Competition and Markets Authority
Which one of the following contained within the FCA Handbook is binding on authorised firms?
A. Rules
B. Guidelines
C. Standards
D. Procedures
A. Rules