Unit 2 - Topic 17 Flashcards
The Financial Conduct Authority’s single strategic objective is to:
Ensure that relevant markets work well so that customers get a fair deal
Individuals who are allowed to carry out certain functions in relation to a firm’s regulated activities are often referred to as:
Approved Persons
The second key Principle of Business as defined by the regulator is that firms must act with skill, care and:
Diligence
‘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:
Insider Dealing
when did mortgages become regulated?
October 2004
which of the following is NOT one of the FCA’s operational objectives?
Reducing the scope for financial crime
which one of the following is NOT one of the Financial Conduct Authority’s Principles for Business with which a firm must comply?
Maintain an independent compliance function
Knowingly giving out false information to influence the price of shares for personal gain is known as:
Market Manipulation
in seeking to promote competition, the FCA uses its power to ensure all of the following except which of the following:
Offering ‘light touch’ regulation for providers that show a strong record in product innovation
What is the main driver for the Financial Services and Markets Act 2007?
The need for integrated legislation and regulation (Because it was too fragmented)
One of the operational objectives of the Financial Conduct Authority is to:
Provide appropriate customer protection
Who has prudential responsibility for deposit takers and insurers?
Prudential Regulatory Authority
There are three main areas of financial crime that the FCA seeks to control. which one of the following is the exception?
Mis-selling investments
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:
Competition and Markets Authority
Which one of the following contained within the FCA Handbook is binding on authorised firms?
Rules
In which sourcebook does the FCA Handbook cover investor complaints and compensation?
Redress
In which sourcebook does the FCA Handbook cover standards for stockbrokers and financial market traders?
Market Conduct
Which of the following BEST describes the reason why the Financial Services and Market Act 2007 was introduced?
The existing regulatory structure was too fragmented
Which one of the following is NOT covered by the Financial Conduct Authority’s Principles for Business?
Guidelines on financial promotions
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:
disclose data on a regular basis to its regulator
Which of the following is NOT one of the Financial Conduct Authority’s Principles of Business with which a firm must comply?
Be open and honest with the market in all respects
The FCA considers that responsibility for the fair treatment of consumers lies with which of the following?
A firm’s senior management
