Wrong mock q

Question 1

If a client is considered an eligible counterparty for the execution of orders, which of the following is true?

Answer 1

The client will be classified as a per se professional client for advisory services

Eligible counterparty (ECP) status only applies to eligible counterparty business, i.e. dealing activities. ECP status does not apply to advisory services. Any client considered an ECP for dealing will be a per se PC for advisory services.

Question 2

New legislation relevant to the Information Commissioner’s Office (ICO) has changed the approach and understanding of data protection. It brought in the ability for the ICO to bring in tougher enforcement penalties through fines. Along with these, what other powers does the ICO have? The power to:

Answer 2

prevent firms from processing personal data

Question 3

Which of the following does NOT require a key information document?

Answer 3

Cash deposit individual savings account

Question 4

Which of the following is TRUE in respect of the conflicts of interest policy?

Answer 4

here a firm is part of a group, the policy should take account any potential conflicts arising from that group

Question 5

Which of the following is true of trail commissions?

Answer 5

Trail commissions of any sort are not allowed

Question 6

Which of the following is least likely to give rise to a conflict of interest?

Answer 6

The correct answer is: B - Encouraging a client to buy when a firm has gone short

Question 7

Money laundering relates to:

Answer 7

Cash AND ASSETS from a criminal source

Question 8

Which of the following applies to a UK firm dealing in shares with an eligible counterparty?

Answer 8

It is an eligible counterparty business and therefore has limited exposure to the conduct of business rules

Question 9

Which ONE of the following supervisory tools is designed to discover the cause, the extent and the potential development of harm?

Answer 9

diagnose

Question 10

Where a firm becomes aware of a conflict of interest that may damage a particular client’s interests, which of the following procedures must the firm follow?

Answer 10

Manage the conflict and continue to deal

Where a firm identifies a conflict of interest they must manage it. Only if they are unable to manage the conflict are they required to disclose it.

Question 11

Which of the following is a breach of the ‘Integrity’ Conduct Rule?

Answer 11

Misleading a client about a transaction

Question 12

Which one of the following is not defined as the client of a firm?

Answer 12

A person acting through an agent

The agent is considered to be the client of the firm unless agreed otherwise.

Question 13

Under which of the following circumstances do the conduct of business rules not require a firm to enter into a client agreement?

Answer 13

The client enters into an insurance contract with the firm as principal

Question 14

Liberty should tell her staff that which of the following products or investments are OUT OF SCOPE of the UK MAR?

Answer 14

Traded endowment policies (TEPs)

It does not cover life assurance products such as endowments, whether secondary market traded or not.

Question 15

A prospectus is required under Section 85 of FSMA and the issuer has decided to raise public awareness by issuing a prospectus advertisement. In relation, specifically, to this advert which of the following pieces of information needs to be clearly stated?

Answer 15

The prospectus has been (or will be) published, and where the investors can obtain it

Question 16

How much notice does the FCA need to give before entering a firm’s premises during an investigation?

Answer 16

A reasonable period

Question 17

fter completing the sale of a personal pension to a retail client, the advisory firm must follow up with which of the following?

Answer 17

A suitability report within 14 calendar days

When a personal pension is sold to retail clients, the advisory firm must provide cancellation rights at the point of sale.
After this point, the firm should follow up with a suitability report within 14 calendar days, to confirm why the firm believes the pension is suitable.

Question 18

In relation to MiFID business, the client’s best interests rule applies to:

Answer 18

All clients, NOT ALL CUSTOMERS

Question 19

A defence against a charge of carrying out a regulated activity without authorisation could be:

Answer 19

Managing own portfolio

Question 20

When a retail client has sought out advice in connection to a personal pension plan and cancellation rights apply, within which of the following number of days must a suitability report be provided to the client?

Answer 20

14 days

Question 21

According to the inducement provisions stated by the FCA, which of the following is not an appropriate payment by the firm?

Answer 21

A third party providing general office equipment used for word processing and accountancy in the normal running of the firm’s activities

General office equipment is specifically prohibited by FCA regulations

Question 22

Who implements and administers the Freedom of Information Act 2000?

Answer 22

The Information Commissioner’s Office

Question 23

Which regulatory body safeguards the members of defined benefit pension schemes?

Answer 23

The Pensions Regulator

Question 24

The Pensions Act 2008, enforced by The Pensions Regulator, requires all UK employers to put certain staff into a workplace pension scheme and contribute towards it. Any employer with at least how many employees has a legal duty to comply with automatic enrolment?
A1

Answer 24

1

Question 25

A firm wishes to apply for Part 4A permission to gain authorisation to conduct regulated activities. Due to the size and nature of a firm, it needs to become a dual-regulated firm. Which of the following is true?

Answer 25

The firm will apply to the PRA who will consult with the FCA before granting Part 4A permission

Question 26

Where the regulator has seen fit to issue a section 56 prohibition order to an individual, which of the following observations is MOST correct? The prohibition order can relate to:

Answer 26

a particular regulated activity or regulated activities generally. If the individual breaches the order, they are guilty of a criminal offence and liable to a fine

Question 27

The Tax and Chancery Chamber of the Upper Tribunal’s responsibilities include:

Answer 27

Hear appeals from authorised FIRMS facing disciplinary action from the FCA

FIRMS NOT CUSTOMERS