Topic 18

Question 1

Examples 1-4 of regulated activity …

Answer 1

1) accepting deposits
2) effecting out and carrying out insurance contracts including funeral plans
3) dealing and arranging investments
4) managing investments

Question 2

Examples 5-8 of regulated activities…

Answer 2

5) establishing and operating collective investments
6) establishing stakeholder pension schemes
7) advising on investments
8) mortgage lending and administration

Question 3

Examples 9-12 of regulated activities…

Answer 3

9) advising on arranging mortgages
10) advising on and arranging general insurance
11) entering into or exercising rights under a regulated consumer credit agreement
12) debt collecting

Question 4

Example 1-4 of regulated investments…

Answer 4

1) deposits
2) electronic money
3) insurance contracts including funeral plans
4) shares, company loss stocks and debentures and warrants

Question 5

Example 5-9 of regulated investments…

Answer 5

5) gilts and local authority stocks
6) units in collective investments
7) rights under stakeholder pension schemes
8) options and futures
9) mortgage contracts

Question 6

1-4 of 8 FCA principles for supervision…

Answer 6

1)Being forward-looking and pre-emptive - addressing poor conduct to avoid risk and serious harm

2)Focusing on FCA strategy and firms’ business models - identifying emerging risks and ensuring the FCA’s supervisory activity mitigates these risks
3)Focusing on firms culture and governance - examining a firm’s purpose and the effectiveness of governance strategies used to identify and mitigate risks
4)Emphasis on individual accountability

Question 7

5-8 of 8 FCA principles for supervision

Answer 7

5)Taking a proportionate and risk-based approach, le targeting firms that could cause the most harm or have the most significant misconduct

6) Encouraging two-way communication - engaging with consumers, industry and firms, and being transparent about FCA priorities and work

7)Ensuring messages provided are co-ordinated and consistent, working closely with other regulatory bodies

8)Fixing systemic harm, preventing it from occurring again and ensuring consumers are compensated

Question 8

Examples of structured CPD…

Answer 8

1) courses
2) seminars
3) lectures
4) conferences
5) workshops
6) e-learning activities

Question 9

Examples of unstructured CPD…

Answer 9

1) conducting product research
2) reading industry relevant material
3) coaching or mentoring sessions