Unit 2 - Topic 17

Question 1

The Financial Conduct Authority’s single strategic objective is to:

Answer 1

Ensure that relevant markets work well so that customers get a fair deal

Question 2

Individuals who are allowed to carry out certain functions in relation to a firm’s regulated activities are often referred to as:

Answer 2

Approved Persons

Question 3

The second key Principle of Business as defined by the regulator is that firms must act with skill, care and:

Answer 3

Diligence

Question 4

‘A situation where individuals use information about a company that is not generally available to deal for their own financial advantage’ is a definition of:

Answer 4

Insider Dealing

Question 5

when did mortgages become regulated?

Answer 5

October 2004

Question 6

which of the following is NOT one of the FCA’s operational objectives?

Answer 6

Reducing the scope for financial crime

Question 7

which one of the following is NOT one of the Financial Conduct Authority’s Principles for Business with which a firm must comply?

Answer 7

Maintain an independent compliance function

Question 8

Knowingly giving out false information to influence the price of shares for personal gain is known as:

Answer 8

Market Manipulation

Question 9

in seeking to promote competition, the FCA uses its power to ensure all of the following except which of the following:

Answer 9

Offering ‘light touch’ regulation for providers that show a strong record in product innovation

Question 10

What is the main driver for the Financial Services and Markets Act 2007?

Answer 10

The need for integrated legislation and regulation (Because it was too fragmented)

Question 11

One of the operational objectives of the Financial Conduct Authority is to:

Answer 11

Provide appropriate customer protection

Question 12

Who has prudential responsibility for deposit takers and insurers?

Answer 12

Prudential Regulatory Authority

Question 13

There are three main areas of financial crime that the FCA seeks to control. which one of the following is the exception?

Answer 13

Mis-selling investments

Question 14

The FCA has powers under the Competition Act 1998 and the Enterprise Act 2002, meaning the respect of competition, it is a concurrent regulator with the:

Answer 14

Competition and Markets Authority

Question 15

Which one of the following contained within the FCA Handbook is binding on authorised firms?

Answer 15

Rules

Question 16

In which sourcebook does the FCA Handbook cover investor complaints and compensation?

Answer 16

Redress

Question 17

In which sourcebook does the FCA Handbook cover standards for stockbrokers and financial market traders?

Answer 17

Market Conduct

Question 18

Which of the following BEST describes the reason why the Financial Services and Market Act 2007 was introduced?

Answer 18

The existing regulatory structure was too fragmented

Question 19

Which one of the following is NOT covered by the Financial Conduct Authority’s Principles for Business?

Answer 19

Guidelines on financial promotions

Question 20

In relation to how a firm deals with its regulator, which one of the following is NOT defined within the Principles of Business? A firm must:

Answer 20

disclose data on a regular basis to its regulator

Question 21

Which of the following is NOT one of the Financial Conduct Authority’s Principles of Business with which a firm must comply?

Answer 21

Be open and honest with the market in all respects

Question 22

The FCA considers that responsibility for the fair treatment of consumers lies with which of the following?

Answer 22

A firm’s senior management