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Cemap > Unit 2 > Flashcards

Unit 2 Flashcards

1
Q

BOE responsibilities

A

Protecting & enchanting monetary & financial stability

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2
Q

What does financial committee do

A

Identify risks that may threaten the stability as a whole

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3
Q

Who does the PRA authorise

A

Large, systemically important providers banks and insurance companies

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4
Q

Who are the FCA responsible for

A

Retail and wholesale firms

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5
Q

FCA strategic objective

A

To make sure relevant markets work well so consumers get a fail deal

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6
Q

What are the 3 operational objectives

A

Protect consumers, protect financial markets and promote competition

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7
Q

Who is responsible for investigating mergers that could restrict competition

A

Competitions and markets authority

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8
Q

What does conduct business sourcebook set out

A

Business standards (MCOBS, ICOBS, BCOBS)

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9
Q

Who do principle of business conduct rules apply to

A

Individuals working in financial services apart from ancillary roles

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10
Q

The new consumer duty principle 12 does not apply to who

A

Institutional investors, professional clients, eligible counterparties

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11
Q

What is part 4a permission

A

To carry out regulated activities

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12
Q

If a firm had taken disciplinary action against a senior manager how long should the firm report to FCA

A

7 days

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13
Q

What is a fixed portfolio

A

Small number of firms with highest level of supervisory attention

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14
Q

Flexible portfolio is

A

Lower level of risk and are supervised through a mixture

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15
Q

Who does training and competence apply to

A

Financial advisers, supervisors of those advisers and supervisors who oversee back office admin functions

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16
Q

What is capital adequacy

A

If a business runs into difficulties the business has sufficient capital to make it unlikely deposits will be at risk

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17
Q

Solvency ratio is

A

Capital as a percentage of the risk adjusted value of assets

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18
Q

What is it called if a business assets exceed its liabilities

A

Solvency

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19
Q

What is the risk of loss as a result of failed internal processes people and systems

A

Operational risk

20
Q

If a firm calls themselves individual what must they offer

A

Offer one product but advise everything within that product

21
Q

What are real time promotions

A

Personal visits, telephone conversations

22
Q

What are non real time promotions

A

Written promotions, newspaper

23
Q

Timescale for issuing SR for investment advice to a retail client in case of life policies

A

Before transaction is concluded

24
Q

Timescale for issuing SR for personal pension/stakeholder where cancellations apply

A

No later than 14th day after the contract concluded

25
Q

Cancellation period for life and pension, insurance

A

30 days

26
Q

Cancellation period for investments

A

14 days

27
Q

Cancellation for mortgages

A

7 days

28
Q

Which type of mortgage is not regulated

A

Consumer buy to let

29
Q

What applies to just solely stakeholder products

A

Basic advice

30
Q

What is core investments

A

Clients with simple straightforward needs

31
Q

What did the FCA introduce for high cost short term credit

A

Interest and fees charged must not exceed 0.8% of the amount borrowed and default fees cannot exceed £15

32
Q

What does the financial action task force do

A

Co ordinate international fight against money laundering terrorist financing

33
Q

Under the proceeds of crime act 2002 what is the conviction for concealing, arranging

A

14 years imprisonment, unlimited fine or both

34
Q

What is the offence for failing to disclose and tipping off

A

Prison up to 5 years unlimited fine or both

35
Q

Offence for partner/director failing to comply

A

2 years prison fine or both

36
Q

Who is the pension regulator responsible for

A

Regulation of work based pension schemes and personal pension schemes

37
Q

Who does MIFID apply to

A

Firms that provide services to clients in relation to tradable financial instruments

38
Q

Who does non MIFID apply to

A

Life assurance pensions and mortgages

39
Q

Who is the FPC a committee of?

A

The Bank of England

40
Q

Who are the PRA & FCS jointly responsible for

A

Financial compensation scheme FSCS and FCA is solely responsible for FCA

41
Q

Record keeping for non mifid business

A

Three years

42
Q

Record keeping for carrying out mifid business

A

5 years

43
Q

Record keeping for carrying out pension transfer business

A

Indefinitely

44
Q

What min solvency ratio does Basel III require banks to reach

A

10.5 %

45
Q

What is regulatory capital

A

The amount of capital that a bank is required to hold in order to meet regulatory requirements

46
Q

What is the liquidity coverage ratio aimed at

A

Ensuring a banks short term liquidity

47
Q

What is the aim of the net stable funding ratio

A

Long term financial resources exceed long term commitments

Cemap (3 decks)

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