Wrong mock q Flashcards
If a client is considered an eligible counterparty for the execution of orders, which of the following is true?
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.
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:
prevent firms from processing personal data
Which of the following does NOT require a key information document?
Cash deposit individual savings account
Which of the following is TRUE in respect of the conflicts of interest policy?
here a firm is part of a group, the policy should take account any potential conflicts arising from that group
Which of the following is true of trail commissions?
Trail commissions of any sort are not allowed
Which of the following is least likely to give rise to a conflict of interest?
The correct answer is: B - Encouraging a client to buy when a firm has gone short
Money laundering relates to:
Cash AND ASSETS from a criminal source
Which of the following applies to a UK firm dealing in shares with an eligible counterparty?
It is an eligible counterparty business and therefore has limited exposure to the conduct of business rules
Which ONE of the following supervisory tools is designed to discover the cause, the extent and the potential development of harm?
diagnose
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?
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.
Which of the following is a breach of the ‘Integrity’ Conduct Rule?
Misleading a client about a transaction
Which one of the following is not defined as the client of a firm?
A person acting through an agent
The agent is considered to be the client of the firm unless agreed otherwise.
Under which of the following circumstances do the conduct of business rules not require a firm to enter into a client agreement?
The client enters into an insurance contract with the firm as principal
Liberty should tell her staff that which of the following products or investments are OUT OF SCOPE of the UK MAR?
Traded endowment policies (TEPs)
It does not cover life assurance products such as endowments, whether secondary market traded or not.
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?
The prospectus has been (or will be) published, and where the investors can obtain it
How much notice does the FCA need to give before entering a firm’s premises during an investigation?
A reasonable period
fter completing the sale of a personal pension to a retail client, the advisory firm must follow up with which of the following?
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.
In relation to MiFID business, the client’s best interests rule applies to:
All clients, NOT ALL CUSTOMERS
A defence against a charge of carrying out a regulated activity without authorisation could be:
Managing own portfolio
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?
14 days
According to the inducement provisions stated by the FCA, which of the following is not an appropriate payment by the firm?
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
Who implements and administers the Freedom of Information Act 2000?
The Information Commissioner’s Office
Which regulatory body safeguards the members of defined benefit pension schemes?
The Pensions Regulator
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
1
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?
The firm will apply to the PRA who will consult with the FCA before granting Part 4A permission
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:
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
The Tax and Chancery Chamber of the Upper Tribunal’s responsibilities include:
Hear appeals from authorised FIRMS facing disciplinary action from the FCA
FIRMS NOT CUSTOMERS
