Topic 24 Other Regulation Affecting The Advice Process Flashcards
1
Q
Which organisation is responsible for the prevention of fraud arising from identity theft?
A
Financial Conduct Authority (FCA)
2
Q
What is the main EU Legislation for online activity and the rise of social media that came into force in May 2016?
A
General Data Protection Regulation (GDPR)
3
Q
The primary UK legislation for Data Protection is what?
A
Data Protection Act 2018
4
Q
Personal data is defined as an individual who can be identified by?
A
- Name
- Identification Number
- Location Data
- Online Identifier
5
Q
The below are what in relation to General Data Protection Regulation (GDPR)?
- Processed lawfully, fairly & in a transparent manner in relation to all individuals
- Collected for specied, explicit & legimate purposes & not further processed in a manner that is incompatible with those purposes
- Adequate, relevent & limited to what is necessary in relation to the purposes for which they are processed
A
UK GDPR
6
Q
The below are what in relation to General Data Protection Regulation (GDPR)?
- Kept accurate & up to date
- Kept in a form that permits identification of data subjects for no longer than is necessary
- Processed in a manner that ensures appropriate security of the personal data
A
UK GDPR
7
Q
Which UK GDPR definition is this?
An individual (natural person) who’s personal data is processed?
A
Data Subject
8
Q
Which UK GDPR definition is this?
Information that can directly or indirectly identity a natural person. Information can be in any format
A
Personal data
9
Q
Special categories of personal data require the individuals consent.
True or False
A
True
10
Q
What are the below in relation to UK GDPR?
- Race
- Religious Beliefs
- Political persuasion
- Trade Union Membership
A
Special categories of personal data
11
Q
What are the below in relation to UK GDPR?
- Sexual Orientation
- Health
- Biometric data
- Genetic data
A
Special categories of personal data
12
Q
Processing covers all aspects of owning data but what does it include?
A
- Owning data
- Recording of data
- Organisation or alteration of data
- Disclosure of data
- Destruction of data
13
Q
What are the below in relation to UK GDPR?
The “legal person” determines the purposes for which data are processed. Data controller is normally an organisation/ employer
A
Data Controller
14
Q
What is a data processor?
A
Person who processes personal data on behalf of the data controller
15
Q
What are the 6 lawful basis for data processing?
A
- Consent
- Contract
- Legal Obligation
- Vital Interests
- Public Task
- Legitimate Interests
16
Q
The below are what in relation to a data subject?
- Access personal data
- Correct inaccurate person data
- Have personal data erased
- Object
- Move personal data from one service provider to another
A
Rights a Data Subject has
17
Q
The below are what in relation to UK GDPR
- Establish a governance structure with roles and responsibilities
- Keep a detailed record of data processing operations
- Document data protection policies & procedures
- Carry out data protection impact assessments for high risk processing operations
A
How an organisation demonstrates compliance with UK GDPR
18
Q
The below are what relating to UK GDPR?
- If receiver is located in a third country
- Is an international organisation
- Particular country covered by UK “adequacy rules”
A
When restricted transfers are permitted
19
Q
Who is responsible for the overseeing of UK GDPR?
A
Information Commissioner
20
Q
Which of the Information Commissioner’s power is this?
Requiring organisations to provide the Information Commissioner’s office with specified information within a certain period
A
Serve Information Notices
21
Q
Which of the Information Commissioner’s power is this?
Committing an organisation to a particular course of action in order to improve its compliance
A
Issue Undertakings
22
Q
Which of the Information Commissioner’s power is this?
Requiring organisations to take (or refrain from taking) specified steps to ensure they comply with the law
A
Serve enforcement notices & “stop now” orders when there has been a breach
23
Q
Which of the Information Commissioner’s power is this?
To check organisations are complying
A
Conduct consensual assessments (audits)
24
Q
Which of the Information Commissioner’s power is this?
To conduct compulsory audits to assess whether organisations processing of personal data follows good practice
A
Serve assessment notices
25
Which of the Information Commissioner's power is this?
Notification that the organisation is subject to a financial penalty as a result of a serious breach of UK GDPR
Issue Monetary Penalty Notices
26
Which of the Information Commissioner's power is this?
Those who commit criminal offences under UK GDPR
Prosecute
27
Which of the Information Commissioner's power is this?
A temporary or permanent ban on data prosecution can be imposed
Issue a ban
28
The below are what in relation to UK GDPR?
- Failure to comply with information or enforcement notice (Data Controller)
- Failure to make a proper notification to the information controller
- Processing of data without authorisation from the commissioner
- Intentionally or recklessly re-identifying individuals from data that is pseudonmised
Criminal offences under UK GDPR
29
What is the maximum penalty for criminal offences under UK GDPR for a firm?
Higher of
- £17.5 Million
- 4% of an organisation's total annual worldwide revenue
30
The below is the responsibility of who?
- "automatic enrolment" of staff onto work based pension scheme
- Protect the benefits of personal pension schemes & people's savings
- Protect the benefits of personal pension schemes where this is a direct pay arrangement
- Promote good adminstration of work based pension schemes
The Pensions Regulator (TPR)
31
The below is the responsibility of who?
- Reduce the risk of situations arising that could lead to claims from the Pension Protection Fund
- Maximise employer compliance with duties & safeguards under Pensions Act 2008
- Minimise any adverse impact of the sustainable growth of an employer
The Pensions Regulator (TPR)
32
The Pensions Regulator aims to consider the combined effect of what?
1. Likelihood of an event occuring
2. Impact of the event on the scheme and it's members
33
The Pensions Regulator is required to issue what?
Issue voluntary codes of practice on a range of subjects
34
Which power of the Pensions regulator is this?
- Identifying & investigating risks
- Requiring all schemes to make regular returns to the regulator
- Requiring trustees/scheme managers give notification of any changes to important information such as type of benefit provided by the scheme
- Regulator be informed quickly if the scheme cannot meet it's funding requirements
Investigating Schemes
35
Which power of the Pensions regulator is this?
- Requiring specific action be taken to improve matters within a certain period of time
- Recovering unpaid contributions from an employer who does not pay them into a scheme within the required period
- Disqualifying trustees who are considered not fit & proper persons
- Imposing finest or prosecuting offences in criminal courts
Putting this right
36
When recovering unpaid contributions from an employer what date in the month should the employer pay them into the scheme?
19th day in the month after they were deducted from the employee
37
The Pension Protection Fund (PPF) was established to protect who?
Members of a private sector defined-benefit scheme in the event of it's insolvency
38
Which power of the Pensions regulator is this?
- Preventing employers from deliberately avoiding their pension obligations leaving the Pension Protection Fund (PPF) to cover their pension liabilities
Acting against avoidance
39
How else could the Pensions Regulator act against avoidance of pension payment in to a employer scheme by the employer?
- **Contribution Notices** requiring payment into the Pension Protection Fund (PPF)
- **Financial Support Directions** to be put in place for an underfunded scheme
40
What is Fraud Compensation Fund?
Provides compensation to occupational pension schemes that have suffered loss through dishonesty
41
Who is responsible for overseeing the Fraud Compensation Scheme?
Pension Protection Fund (PPF)
42
The below are relevant to the Pension Protection Fund (PPF) but what are they?
- Imposes a levy on defined benefits schemes
- Takes on assets of a scheme that are transferred to the fund
- Seeks recovery of assets from insolvent employers
- Seeks to grow it's funds through investment
How the Pension Protection Fund (PPF) funds compensation schemes
43
Electronic Money (E-Money) is what
Electronically stored monetary value issued on receipt of funds for making transactions online
44
The second Electronic Money Directive (2EMD) was introduced when?
April 30th 2011
45
The Electronic Money, Payment Card Interchange Fee & payment Service (Amended) regulations 2023 removed a limitation on the FCA'S power to make rules relating to what?
- Authorised & Small Electronic Money Institutions
- Authorised & Small Money Institutions
- Registered account information service providers
46
Which directive covers the following?
- Issues shares
- Bonds
- Units in a collective investment
- Derivatives
Financial Instruments Directives (MiFID)
47
Markets in Financial Instruments Directives (MiFID) aims to increase competition & consumer protection in which 3 arrears?
1. Conduct of Business
2. Organisation
3. Market Transparency
48
"Core Activities" of Markets in Financial Instruments Directives (MiFID) are what?
Investment services & activities
49
"Non- Core Activities" of Markets in Financial Instruments Directives (MiFID) are what?
Ancillary Services
50
The below are what in relation to Markets in Financial Instruments Directives (MiFID)
- Receipt & Transmission of orders from investors
- Executive of orders on behalf of customers
- Investment Advice
- Discretionary portfolio Management
- Underwriting the issue of specified financial instruments
Investment activities covered by MiFID
51
Which reform under MiFID 2 is this?
Enhancing the level of protection for different types of Investor
Conduct of business rules
52
Which reform under MiFID 2 is this?
The MiFLD pre & post trade transparency regime for share is extended to non-equity shares
Transparency
53
Which reform under MiFID 2 is this?
Designed to produce comprehensive regulation of secondary training
Developments in market structures
54
Which reform under MiFID 2 is this?
Enhanced requirements in respect of the management of firms, explicit organisational & conduct requirements relating to product governance
Organisation requirements
55
Which reform under MiFID 2 is this?
Refinement of & augmentation of existing MiFID requirements
Commodity Derivatives
56
Which reform under MiFID 2 is this?
Measures to ensure high frequency trading does not adversely impact on markets
High Frequency trading
57
Which reform under MiFID 2 is this?
Requirement for aggregated cost disclosure detailing all adviser charges & product charges
Disclosure
58
Which reform under MiFID 2 is this?
The requirement to assess sustainability when recommending an Investor, buys, holds or sells (rather than buys or sells)
Sustainability
59
What do the below do?
- Undertakings for Collective Investments in Transferable Securities (UCITS)
- Alternative Investment Find Managers Directive (AIFMD)
Regulate investment funds & their managers in the EU
60
Mutual recognition of authorisation that facilities free circulation within the EU covers which directive?
Undertakings for Collective Investments in Transferable Securities (UCITS)
61
Applies to the managers of Alternative Investment Funds (AIF) that are sold to professional investors. Covers which EU directive?
Alternative Investment Fund Managers Directive (AIFMD)
62
In relation to life assurance the below are what?
- Provide EU citizens with access to the widest range of insurance products
- Enable an insurance company authorised in member states to pursue it's activities throughout the EU
Main objectives of European Single Market for insurance
63
To achieve it's objective the EU has always dealt with life assurance & non-assurance different?
True or False
True
64
The Consolidated Life Assurance Directive (2022) does what? It includes the following parts.
- Definitions of what constitutes life assurance also (annuities & Income Protection)
- Rules applying to an insurer that wishes to provide life assurance on a cross border basis
- Requirements that must be adhered to for a life assurance company to be authorised
EU legislation on life assurance
65
The Consolidated Life Assurance Directive (2022) does what? It includes the following parts.
- Requirements for ongoing supervision of a life assurance company
- Requirements for policy holders to be provided with clear and precise information about the features of a product
- Cancellation rights
EU legislation on life assurance
66
What did the 2nd & 3rd Non-Life Council Directives do?
Enables a non-life insurance firm to sell insurance in a different country from where it's head office is located
67
What does a Directive on Insurance Medium (IDM) do?
Enables insurance intermediaries to provide services in all EU states
68
What must all independent insurance intermediaries do to be covered by the Directive on Insurance Mediation (IMD)
Be registered with a competent authority in their home state
69
To operate as an insurance intermediary an intermediary must not have been?
1. Convicted of crimes against property or other financial crimes
2. Declared bankrupt
70
Rules for insurance intermediaries state what regarding financial capacity of a firm?
The insurance company have reserves equivalent to an amount equal to a percentage of the premiums received per annum
71
The Directive on Insurance Medium (IMD) was replaced by what in October 2018?
Insurance Distribution Directive (IDD)
72
Which reform under the Insurance Distribution Directive (IDD) is this?
To cover insurance sale and some aspects of price comparison websites
Extension of the scope of (IMD)
73
Which reform under the Insurance Distribution Directive (IDD) is this?
Formal requirement for intermediaries to undertake at least 15 hours of continuing professional development each year
Enhanced Professional Requirements
74
Which reform under the Insurance Distribution Directive (IDD) is this?
Requirement that insurance distributions must always act honestly, fairly & professionally in the best interests of customers
Conduct of business rules
75
Which reform under the Insurance Distribution Directive (IDD) is this?
Before an application for insurance is made to ensure customers receive clear information
Mandatory Disclosures
76
Which reform under the Insurance Distribution Directive (IDD) is this?
For non-life contracts
Requirement for a standardised "insurance product information document"
77
Which reform under the Insurance Distribution Directive (IDD) is this?
For the sale of life insurance products with investment elements
Stricter requirements
78
Which reform under the Insurance Distribution Directive (IDD) is this?
For the sale of bundled products
Additional information requirements
79
Which reform under the Insurance Distribution Directive (IDD) is this?
Single electronic database of cross border insurance intermediaries
Simplified procedure for cross border entry to insurance markets across the EU
80
What is the role of External Auditors?
Published financial statements & account and are separate from the business who's accounts are being audited
81
What is the role of Internal Auditors?
Check operations are being conducted effectively & economically in line with organisations policies
82
The below are what in relation to Internal Auditors?
- Review how an organisation is managing it's risks
- Ascertain whether appropriate controls have been established
- Evaluate & suggest improvements to control & governance processes
Tasks of Internal Auditors
83
What is the role of Trustees?
Ensure that any property held in trust is dealt with in accordance with the trust deed
84
Why are most occupational pension schemes set up under a trust deed?
Pension assets are kept separate from the employers business assets
85
All the below are what in relation to oversight groups?
- Production &; publication of compliance manual
- Maintenance of compliance records such as complaints register & promotions records
- Responding to & correspondence with FCA on compliance matters
- Ensuring staff meet FCA'S requirements regarding recruitment, training, supervision & selling practices
Responsibility of a compliance officer
86
What is the professional body for a compliance officer?
Association of Professional Compliance Consultants
87
What is the pensions regulator responsible for?
- Occupational pension schemes
- Personal pension schemes where employer has direct pay arrangement
88
Is a Data control a senior manager?
No
