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UKFR > UKFS Drill Down > Flashcards

UKFS Drill Down Flashcards

1
Q

Why was the Financial Action Task Force set-up?

A

To coordinate the international fight against money laundering.

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2
Q

In 2001, what was brought into the remit of FATF?

A) Mortgages
B) Bribery
C) Terrorist Financing

A

C) Terrorist Financing

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3
Q

Which of the following is true?

The FATF is:
A) A governmental body
B) An inter-governmental body

A

B) An inter-governmental body

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4
Q

Which of the following is true?

The FATF is:
A) A policy-making body
B) A regulatory body

A

A) A policy-making body

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5
Q

The FATF is involved in law-enforcement. True or false

A

False.

It is a policy-making body: it does not become involved in law enforcement (that is the responsibility of local authorities in individual countries, such as the National Crime Agency in the UK).

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6
Q

Who is responsible in the UK for enforcing the FATF policies?

A

The National Crime Agency

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7
Q

Does the FATF maintain a list of “non-cooperative countries and territories” who do not have adequate anti-money laundering measures?

A

Yes

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8
Q

Which of the following does not fall into the 3 main areas of work for the FATF?

1) Setting appropriate standards
2) Evaluating the extent to which individual countries have implemented standards
3) Retrospectively assessing ML activities
4) Identifying ML trends

A

3) Retrospectively assessing ML activities - not specifically named

The work of the FATF falls into three main areas:

1) setting appropriate standards for national anti-money-laundering programmes, detailed in a list of 40 recommendations incorporating minimum standards for the measures that countries should have in place within their own criminal justice and regulatory systems;

2) evaluating the extent to which individual countries have implemented these standards;

3) identifying trends in money-laundering methods.

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9
Q

To which body should a firm report a significant breach of handling personal data?

A) The Financial Conduct Authority
B) The Financial Ombudsman Service
C) The Prudential Regulation Authority
D) The information Commissioner

A

D) The information Commissioner

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10
Q

The primary UK legislation in relation to data protection WAS:

A) The Data protection Directive 1995
B) The Data Protection Act 1998
C) General Data Protection Regulation 2016

A

B) The Data Protection Act 1998

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11
Q

Which one of the following is not a criminal offence under GDPR?

1) For a data controller to fail to comply with an information or enforcement notice.
2) Failure to make a proper notification to the Information Commissioner.
3) Processing of data without authorisation from the Commissioner.
4) Intentionally or recklessly re-identifying individuals from data that is pseudonymised
5) Collecting information unlawfully and unbeknowingly to the person

A

5) Collecting information unlawfully and unbeknowingly to the person - not listed

Other are

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12
Q

Which oversight group would be most likely to review a financial institution’s financial statements and accounts before they are published?

A) Compliance Officers
B) External Auditors
C) Internal Auditors
D) Trustees

A

B) External Auditors

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13
Q

Which oversight group would be most likely to review how an organisation is managing its risks?

A) Compliance Officers
B) External Auditors
C) Internal Auditors
D) Trustees

A

C) Internal Auditors

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14
Q

Which oversight group would be most likely to ascertain whether appropriate controls have been established?

A) Compliance Officers
B) External Auditors
C) Internal Auditors
D) Trustees

A

C) Internal Auditors

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15
Q

Which oversight group would be most likely to evaluate and suggest improvements to control and governance processes ?

A) Compliance Officers
B) External Auditors
C) Internal Auditors
D) Trustees

A

C) Internal Auditors

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16
Q

Which oversight group would be most to appoint a compliance officer to have oversight of a firm’s compliance function?

A) Compliance Officers
B) External Auditors
C) Internal Auditors
D) Trustees

A

A) Compliance Officers

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17
Q

Which oversight group would be most likely to
ensure that any property held in trust is dealt with in accordance with the trust deed for the benefit of the trust’s beneficiaries?

A) Compliance Officers
B) External Auditors
C) Internal Auditors
D) Trustees

A

D) Trustees

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18
Q

In respect of mortgage advice, which of the following pieces of information is not required as part of the initial disclosures under MCOB 4?

A) Arrears arrangements
B) Complaints and compensation details
C) Fees associated with the service
D) The providers of the mortgages under discussion

A

A) Arrears arrangements - not required

The customer must be provided with the following information:
. contact details;
. mortgage providers;
. limitations in service;
. fee payable;
. firm’s FCA registration details;
. how to complain;
. compensation scheme.

19
Q

In respect of mortgage advice, which of the following pieces of information is not required as part of the initial disclosures under MCOB 5?

A) The APR
B) The monthly installment
C) 1% DV01 of the monthly installment
D) The tenor

A

D) The tenor

20
Q

The details of MCOB 5 must be provided:

A) In Client Agreement
B) In IDD (Initial Disclosure Document)
C) In ESIS (European Standardised Information Sheet)

A

C) In ESIS (European Standardised Information Sheet)

The required information must be provided via a European Standardised Information Sheet (ESIS). The contents of the ESIS are set out in the rules, and variations from the prescribed format are not permitted.

21
Q

Under MCOB 3, which of the following are not permitted:

A) Unsolicited non-real time promotions
B) Unsolicited real-time promotions

A

B) Unsolicited real-time promotions

22
Q

An individual who applies for a senior management role or moves to a different senior manager role that is materially different form their current one, must be approved by:

A) The firm
B) SM&CR
C) The regulators

A

C) The regulators

23
Q

Under the Certification Regime, individuals performing a specific function that isn’t a senior management function but that can have a significant impact on customers must be approved by:

A) Both the FCA and their employing firm
B) Either the FCA or their employing firm
C) The FCA only
D) their employing firm only

A

D) their employing firm only

Individuals in certified functions are subject to the Certification Regime (CR): they are not required to secure direct approval from the FCA but the firm, in effect, certifies their fitness and propriety to carry out the role.

Each firm must take reasonable care to ensure that no employee carries out a role for which certification is required until they have been assessed as “fit and proper”. Their

23
Q

Under the Certification Regime, individuals performing a specific function that isn’t a senior management function but that can have a significant impact on customers must be approved by:

A) Both the FCA and their employing firm
B) Either the FCA or their employing firm
C) The FCA only
D) their employing firm only

A

D) their employing firm only

Individuals in certified functions are subject to the Certification Regime (CR): they are not required to secure direct approval from the FCA but the firm, in effect, certifies their fitness and propriety to carry out the role.

Each firm must take reasonable care to ensure that no employee carries out a role for which certification is required until they have been assessed as “fit and proper”. Their

24
Q

An authorised firm must maintain records showing details of an adviser’s training and competence. When an adviser who carries out pension transfer business leaves the company or changes role, these records must be maintained for at least what minimum period?

A) 3 years
B) 5 years
C) 10 years
D) Indefinitely

A

D) Indefinitely

25
Q

When an adviser who carries out non-MIFID business leaves the company or changes role, these records must be maintained for at least what minimum period?

A) 3 years
B) 5 years
C) 10 years
D) Indefinitely

A

A) 3 years

26
Q

When an adviser who carries out MIFID business leaves the company or changes role, these records must be maintained for at least what minimum period?

A) 3 years
B) 5 years
C) 10 years
D) Indefinitely

A

B) 5 years

27
Q

Miranda performs a senior management function in the firm she works for. Which of the following principles does NOT specifically apply to her role?

She must:
A) at all times, act to avoid situations that could lead to risks to the business.
B) disclose appropriately any information of which the FCA or PRA would reasonably expect notice.
C) take reasonable steps to ensure that the business of the firm for which she is responsible complies with relevant regulatory requirements and standards
D) take reasonable steps to ensure that the business of the firm for which she is responsible is controlled effectively.

A

A) at all times, act to avoid situations that could lead to risks to the business.

The tier two conduct rules under SM&CR for senior managers:

SM1 – you must take reasonable steps to ensure that the business of the firm for which you are responsible is controlled effectively.

SM2 – you must take reasonable steps to ensure that the business of the firm for which you are responsible complies with the relevant requirements and standards of the regulatory system.

SM3 – you must take reasonable steps to ensure that any delegation of your responsibilities is to an appropriate person and that you oversee the discharge of the delegated responsibility effectively.

SM4 – you must disclose appropriately any information of which the FCA or PRA would reasonably expect notice.

28
Q

Robo-advisors provide financial advice which is primarily based on the use of:

A) algorithms
B) case-studies
C) human intervention
D) web analytics

A

A) algorithms

29
Q

After arrears have arisen, within what period should mortgage customers be provided with specific information from their lender?

A) Immediately
B) 7 Working days
C) 15 working days
D) 30 working days

A

C) 15 working days

Under MCOB13, Customers in arrears must be given the following information within 15
working days of the lender becoming aware of arrears:
1) the MoneyHelper information sheet ‘Problems paying your mortgage’;
2) the missed payments and the total of arrears including any charges incurred;
3) the outstanding debt;
4) any further charges that may be incurred unless arrears are cleared.

30
Q

Individuals performing which of the following roles will be individually vetted and approved by the FCA?

Those:
A) In certified functions and those performing senior management functions
B) Performing an ancillary role
C) in certified functions only
D) Performing in senior management functions only

A

D) Performing in senior management functions only

31
Q

Within an authorised firm the Financial Conduct Authority considers that responsibility for the fair treatment of customers lies with:

A) The firm’s advisors
B) the firm’s senior management
C) All employees
D) The firm’s operational managers

A

B) the firm’s senior management

32
Q

Which of the following types of mortgage arrangement became regulated by the FCA under MCOB for the first time from March 2016?

A) Second charge loans
B) Business buy-to-let mortgages
C) Further advances
D) Lifetime mortgages

A

A) Second charge loans

33
Q

The specialist sourcebooks section within the FCA Handbook includes arrangements for:
A) Individual responsibilities
B) International trading
C) Product derivatives
D) Professional firms

A

D) Professional firms

34
Q

The FCA Training and Competence Sourcebook applies to:

A) financial advisers, supervisors of those advisers and supervisors of certain ‘back office’ functions.
B) supervisors of advisers, supervisors of certain ‘back office’ functions and clerical input staff.
C) supervisors of certain ‘back office’ functions, clerical claims staff and supervisors of advisers.
D) the company accountants, financial advisers and supervisors of certain ‘back office’ functions.

A

A) financial advisers, supervisors of those advisers and supervisors of certain ‘back office’ functions.

35
Q

When buying goods or services, consumers have
a right to each of the following except:

A) clear and honest information before they
buy.
B) to be supplied with goods that are fit for
purpose.
C) to get what they have paid for.
D) to pay a fair price that reflects market rates.

A

D) to pay a fair price that reflects market rates.

36
Q

A robbery occurred in Canada and the proceeds were laundered in the UK. Under what circumstances would the laundering of the proceeds be covered by the Third Money Laundering Directive?

A) In all circumstances
B) Only if the money launderers were EU citizens
C) Only where the funds exceeded 15,000 EUR
D) Only where the original offence was reported to the EU enforcement agencies

A

A) In all circumstances

The directive specifies that money laundering that takes place within the EU will be treated under EU money laundering rules, even if the activities that generated the property to be laundered took place in a non-EU country

37
Q

The legal person that determines the purposes for which data is processed and the way this is done is referred to as the:

data controller.
data processor.
Information Commissioner.
information controller.

A

data controller.

38
Q

Pauline is offering mortgage advice to a client. Who is ultimately responsible for assuring that the mortgage loan is affordable? The:

1) adviser.
2) adviser’s compliance department.
3) client.
4) lender.

A

lender.

39
Q

Which of the following areas is not included in the ‘fit and proper’ test required by the FCA?

1) Complaints received.
2) Criminal record.
3) Current levels of earnings.
4) Disqualification as a director.

A

3) Current levels of earnings.

40
Q

Which body is responsible for the Financial Ombudsman Service?

Competition and Markets Authority.
Financial Conduct Authority.
Financial Policy Committee.
Prudential Regulation Authority

A

Financial Conduct Authority.

41
Q

One of the duties of a money laundering reporting officer is to:

A) detail how Financial Action Task Force findings have been used during the year.
B) train all staff on anti-money-laundering procedures.
C) individually vet all suspicious activity reports.
D) prepare the training for all customer facing staff on anti-money-laundering procedures.

A

A) detail how Financial Action Task Force findings have been used during the year.

At least once in each calendar year senior management of the firm must
requisition a report from the MLRO. This report must:

1) assess the firm’s compliance with the Joint Money Laundering Steering Group guidance notes;
2) indicate how Financial Action Task Force findings have been used during the year;
3) provide information about reports of suspected money-laundering incidents submitted by staff during the year.

42
Q

Which of the following employees at authorised firms do the Code of Conduct rules apply to?

A) All Staff
B) All Staff, excluding ancillary staff
C) Senior managers only
D) Senior managers and certified staff only

A

B) All Staff, excluding ancillary staff

43
Q

One of the six outcomes for retail consumers in relation to the fair treatment of customers requires that firms ensure that there are no unreasonable barriers to:

A) accessing products, receiving suitable advice, or complaining.
B) accessing products, switching product or provider, or making a claim.
C) switching product or provider, receiving suitable advice, or making a claim.
D) switching product or provider, making a claim, or complaining.

A

D) switching product or provider, making a claim, or complaining.

Switching and complaining

UKFR (27 decks)

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