UK Fr Unit 1

Question 1

1. The maximum compensation provided by the Financial Services Compensation Scheme (FSCS) is higher for deposits than for investments.

Answer 1

False

Question 2

2. A charity will be classed by the FCA as an eligible complainant where its annual income is under £2m.

Answer 2

False

Question 3

3. The maximum penalty for breaching the Bribery Act 2010 is an unlimited fine and a term of imprisonment of up to ten years.

Answer 3

True

Question 4

4. Awards made by the Financial Ombudsman Scheme are binding on the firm but not on the complainant.

Answer 4

True

Question 5

5. The Financial Services Compensation Scheme (FSCS) excludes firms based in the Channel Islands and the Isle of Man.

Answer 5

True

Question 6

6. The FCA rules on complaint handling procedures do not cover complaints from business customers.

Answer 6

False

Question 7

7. Only written complaints are covered by the FCA’s complaints rules.

Answer 7

False

Question 8

8. The maximum award that can be made by the Financial Ombudsman Service is £50,000.

Answer 8

False

Question 9

9. Under anti-money-laundering rules, firms must keep evidence of client identification indefinitely.

Answer 9

False

Question 10

10. The anti-money-laundering rules require an authorised firm to obtain satisfactory evidence of identity from all investors for all transactions, irrespective of the amount.

Answer 10

False

Question 11

11. A loan for £30,000 to buy a car would be a regulated loan under the Consumer Credit Act 2006.

Answer 11

True

Question 12

12. The Information Commissioner can issue financial penalty notices for serious breaches of the General Data Protection Regulation.

Answer 12

True

Question 13

13. The Pensions Regulator, and not the FCA, is responsible for the regulation of work-based pension schemes.

Answer 13

True

Question 14

14. The Consumer Rights Act 2015 dictates that a contract that contains a clause that is found to be unfair will be deemed to be wholly invalid.

Answer 14

False

Question 15

15. The General Data Protection Regulation prohibits the processing of data relating to an individual’s racial origin without their explicit consent.

Answer 15

True

Question 16

The Pensions Ombudsman can decide about complaints and disputes relating to the running of pension schemes as well as the sales and marketing of pension schemes.

Answer 16

False

Question 17

Under the General Data Protection Regulation, the data controller is the ‘legal’ person who determines the purposes for which data is processed and the way in which this is done.

Answer 17

True

Question 18

A firm’s Money Laundering Reporting Officer must provide senior management with a report at least once a year, which must include details of any incidents reported by staff during the year.

Answer 18

True

Question 19

Under the Financial Services Act 2012, all consumers and designated bodies can make a super complaint to the FCA.

Answer 19

False

Question 20

Generally, a charge can be made by the data controller when a data subject asks to access their personal data through a subject access request.

Answer 20

True

Question 21

A current passport is an acceptable form of identification under anti-money-laundering client identification rules.

Answer 21

True

Question 22

Under the General Data Protection Regulation, data falling under the special categories of personal data can only be processed if the individual has given their explicit consent.

Answer 22

True

Question 23

The international fight against money laundering is coordinated by the Joint Money Laundering Steering Group.

Answer 23

False

Question 24

UCITS legislation enables management companies in any EU member state to operate UCITS funds established in another EU member state.

Answer 24

True

Question 25

Match the money laundering offence with its penalty. (Pick only two

Answer 25

Concealing criminal property : 14 years.

Tipping off : 5 years.