TOPIC 24 & 25 Other regulation & consumer rights, Complaints and Compensation Flashcards
Which of the following is defined as a special category of personal data under data protection legislation?
a) Age.
b) Race.
c) Sex.
d) Address.
b) Race.
The EU Consolidated Life Directive (2002) does not apply to which of the following?
a) Annuities.
b) Whole of life assurance.
c) Income protection.
d) Personal pensions.
d) Personal pensions.
With regard to oversight, which of the following is true?
a) Internal auditors are responsible for making sure a firm’s financial statements are accurate.
b) Unit trust trustees are the legal owners of the trust assets.
c) External auditors are concerned with a firm’s processes and risk management.
d) Compliance officer is not a senior management function under the Senior Managers and Certification Regime.
b) Unit trust trustees are the legal owners of the trust assets.
Which of the following is true in relation to UK domiciled alternative investment funds (AIFs)?
a) UK AIFs can be marketed cross-border to a retail investor using the marketing passport.
b) UK AIFs sold in EU countries are subject to UK marketing rules.
c) AIFs is the term used for UK UCITS wishing to market into the EU since Brexit.
d) Passporting rights give UK AIFs the facility to be marketed in EU member states under a streamlined process.
c) AIFs is the term used for UK UCITS wishing to market into the EU since Brexit.
The Insurance Mediation Directive and the Insurance Distribution Directive do not apply to tied agents of an insurance company.
a) True b) False
a) True
The Markets in Financial Instruments Directive applies to advising on:
a) unit trusts.
b) life assurance.
c) personal pension.
d) mortgages.
a) unit trusts.
A firm subject to the Markets in Financial Instruments Directive must seek authorisation in each EEA country it intends to operate in.
a) True
b) False
b) False
The Pension Protection Fund does not protect members of personal pension schemes.
a) True b) False
a) True
What is not a power available to the Pensions Regulator?
a) Issuing compensation notices for personal pension mis-sales.
b) Issuing contribution notices.
c) Disqualifying trustees who are not considered fit and proper.
d) Imposing fines or prosecuting offences through courts.
a) Issuing compensation notices for personal pension mis-sales.
Which of the following data protection principles is incorrectly stated?
a) Principle 1: data must be processed lawfully, fairly and in a transparent manner in relation to individuals.
b) Principle 2: data must be collected for specified, explicit and legitimate purposes.
c) Principle 3: data must be adequate, relevant and limited to what is necessary in relation to the purposes for which they are processed.
d) Principle 5: data must be kept in a form which does not identify data subjects in any circumstances.
d) Principle 5: data must be kept in a form which does not identify data subjects in any circumstances.
What is the difference between a data controller and a data processor?
A data controller is legally accountable for the purposes for which data is processed and the way such processing is carried out. A data controller is a ‘legal person’ but not necessarily a ‘natural person’, ie it might be an organisation rather than an individual.
A data processor is a person who processes personal data on behalf of the
data controller.
What does GDPR define as ‘sensitive data’?
race;
religious beliefs;
political persuasion;
trade union membership;
sexual orientation;
health;
biometric data;
genetic data
Which of the following is not one of the GDPR principles?
a) Data must be adequate (but not excessive) and relevant to the purpose for which it is processed.
b) Data controllers must take appropriate technical and organisational measures to keep data secure from accidental or deliberate misuse, damage or destruction.
c) Data must not be kept for longer than five years from the point at which it is gathered.
d) Data must be kept accurate and up to date.
c) Data must not be kept for longer than five years from the point at which it is gathered.
The principle actually states that data must not be kept for longer than is necessary. In a financial services context, this will be determined by the record keeping requirements relating to specific products or to money laundering rules.
What is the penalty for committing a criminal offence in relation to UK GDPR?
The maximum penalty for a criminal offence in relation to UK GDPR is the higher of £17.5m or 4 per cent of the organisation’s worldwide turnover of the previous financial year.
The Pensions Regulator is responsible for the regulation of occupational pension schemes only. True or false?
False. The Pensions Regulator is responsible for occupational pension schemes and for personal pension schemes where the employer has a direct pay arrangement.
What is the role of the Pension Protection Fund?
The Pension Protection Fund provides compensation payments to members of defined benefit pension schemes if a firm becomes insolvent with insufficient funds to maintain full benefits for scheme members.
