Unit 2 - Topic 18 Flashcards
Which statement BEST describes the relationship between the ‘fit and proper’ test and the Senior Management and Certification Regime?
A satisfactory ‘fit and proper’ test is necessary before and individual can be accepted for a senior management role
The FCA rules insist that an organisation’s systems and controls are clearly documented. which ONE of the following is also an FCA rules with regard to systems and controls?
They must be regularly reviewed
If the FCA discovers a contravention of its rules, one of the steps it may take is to vary a firm’s permissions. this means that:
The firm my have one of its regulated activities removed
Which one of the following areas is NOT included in the ‘fit and proper’ test required by the FCA?
Previous levels of earning
In the FCA Handbook there is a section on rules relating to arrangements, systems and controls within authorised firms. these rules:
Require directors and senior managers to take responsibility for the effective management of their firms
What is the FCA’s most severe disciplinary power?
Withdrawal of authorisation
which one of the following job applicants is LEAST likely to meet the FCA ‘fit and proper’ requirements?
Julie, who has missed her last two mortgage payments following a divorce
The FCA Training and Competence Sourcebook is PARTICULARLY prescriptive in relation to three groups of employees who are subject to detailed training and competence rules. these three groups include:
Financial advisors, Supervisors of those advisers and Supervisors of certain ‘back office’ functions
Training and competence records for an individual working for a non MIFID firm must be retained for a specified period after they have left the firm. This period is:
Three years
Tony has almost completed his induction training with Rigour Bank, prior to taking up a position of trainee financial adviser. The FCA require that the training he receives is:
Evaluated to check its success
Simon has undergone his initial financial adviser training with Bulling Bank, but has not yet passed an appropriate examination. Under what circumstances might he be allowed to advise customers about regulated products, if at all?
Under no circumstances can he offer advice to customers
Which of the following statements is FALSE in relation to Training and Competence regulation?
All approved persons are subject to the detailed rules
Which one of the following areas is NOT specifically covered by the ‘Training and Competence’ requirements?
Business production levels
Ben has been successful in his training as an authorised adviser. What happens next?
His continued competence will be monitored
Which of the following group of company employees would NOT be subject to detailed rules of training and competence under the FCA’s Conduct of Business rules?
Directors
