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48 Cards in this Set
- Front
- Back
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You are discussing pension planning with your client and they tell you they part of a State scheme in the early 1970's. This means they may be entitled to receive benefits from:
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The Graduated State pension
Learning outcome 2 - Understand how the retail consumer is served by the financial services industry |
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The 'running yield' of a gilt shows which of the folowing?
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The real return from the price paid
Learning outcome 2 - Understand how the retaqil consumer is erved by the financial services industry |
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Which of the following is NOt one of the categories of contract that can apply to minors?
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Part binding
Learning outocme 3. Legal concepts... |
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Who is responsible for the acts of an IFA when they acting as an agent for a client?
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The client
Learning outocme 3. Legal concepts... |
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The remuneration code which was added to the FSA Handbook in January 2010 places remuneration stratgey requirements on:
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Banks, Building Societies and broker dealers
Learning outcome 5 FSA's responsibilities and approach to regulation |
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Under the FSA requirements for firms, how often should they test their capital resources?
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At least annually
Learning outocme 5. FSA's responsibilities and approach to regulation |
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What information is contained within Block 8 of the FSA Handbook?
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Guides giving an overview of topics for different firms
Learning outocme 5. FSA's responsibilities and approach to regulation |
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In determining its risk-based approach to the supervision of a firm the FSA takes account of which two factors?
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Probability and impact
Learning outocme 5. FSA's responsibilities and approach to regulation |
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The FSA's Senior Management Arrangements Systems and Controls Sourcebook replaced which of the following?
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The Money Laundering Sourcebook
Learning outocme 5. FSA's responsibilities and approach to regulation |
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The layering stage of money laundering involves:
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* An unlimited number of transactions
* Hiding the original source of the funds Learning outcome 6: Apply the principles and rules as set out in the regulatory framework |
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You are employed within an Appointed Representative (AR) of an FSA authorised firm. This means that:
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* The firm will have an agreement with a principal to carry out the business
* The principal is responsible for the actions of the AR Learning outcome 6: Apply the principles and rules as set out in the regulatory framework |
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Sophie has responded to a newspaper advert for a financial product and completed a short application form contained in the advertisement. This is an example of a:
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A direct offer promotion
Learning outcome 7: Apply the regulatory framework in practice for the consumer |
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Paul is a Whole of Market adviser for a regulated firm with several advisers. This means that:
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* He is required to have professional indemnity insurance
* He is permitted to advise on products from a panel of providers Learning outcome 7: Apply the regulatory framework in practice for the consumer |
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In the planning and objectives section of a fact-find, the adviser needs to be aware of whether:
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The client is more concerned with protecting whjat they already have or planning for the future
Learning outcome 8: Understand the range of skills required when advising clients |
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The FSA's Principles for Businesses can be defined as:
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11 general statements that set out the obligations of firms under the regulatory system
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The Principles of Inclusivity, Materiality and Responsiveness within the AA1000 standards, are those behind the framework for assessing ethics and:
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Sustainability
Learning outcome 10: Apply the Code of Ethics and professional standards to business behaviours of individuals. Learning outcome 11. Critically evaluate the outcomes that distinguish between ethical and compliance driven behaviours |
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At what level is a firm or sector's committment to ethical conduct set out within its Ethics Code?
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At a high level
Learning outcome 10: Apply the Code of Ethics and |
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Which of the following factors is required to fully embed a code of ethics?
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A continuous learning culture
Learning outcome 11. Critically evaluate the outcomes that distinguish |
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In relation to Income Protection Insurance (IPI), which of the following statements is FALSE in relation to the payment of the benefits?
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They will continue for a period chosen by the policyholder
Learning outcome 2 Understand how the retial customer is erved.. |
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A firm's Compliance Department may carry out which of the following activities?
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Monitoring visits on advisers
Learning outcome 5 |
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Client agreements are not required for?
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* Direct offer financial promotions
* Life offices selling life and pensions as a principal |
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Monetary stability, one of the core purposes of the Bank of England, is created through stable prices and chieved by the Government's:
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Inflation targets
Learning Outcome 4 Understanding the regulation of financial servcies |
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The UK Standing Committee on Financial Stability is chaired by:
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HM Treasury
Learning Outcome 4 Understanding the regulation of financial servcies |
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The Moneyy Laundering Regulations 2007 require firms to do which of the following?
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Place a greater emphasis on customer identification
Learning Outcome 4 Understanding the regulation of financial servcies |
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A financial adviser has falsely stated to a client that they are authorised by the FSA. In this situation, the FSA can:
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Begin prosecutions
Learning Outcome 5: the FSA's responsibilities and approach to regulation |
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Which of the following strategies does the FSA lead with the Government to promot greater awareness of the financial system?
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The National Strategy for Financial Capability
Learning Outcome 5: the FSA's responsibilities and approach to regulation |
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In its work to reduce financial crime, the FSA focuses on three main types. Which of the following is NOT one of their areas of focus?
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Dishonesty
Learning Outcome 5: the FSA's responsibilities and approach to regulation |
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Under the Senior Management Arrangements (SYSC2) of the high level standards within the FSA Handbook, what should each firm do?
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Appoint indivduals to ne personally responsible for 'controlled functions'
Learning Outcome 5: the FSA's responsibilities and approach to regulation |
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The EU's Markets Abuse Directive (MAD) identifies the specific offences of:
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Insider dealing and market manipulation
Learning Outcome 5: the FSA's responsibilities and approach to regulation |
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Who appoints the Board of the Financial Services Authority?
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HM Treasury
Learning Outcome 5: the FSA's responsibilities and approach to regulation |
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In which block of the FSA Handbook would the specialist sourcebooks for Collective Investment Schemes (COLL) and Recognised Investment Exchanges and Recognised Clearing Houses (REC) be found?
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Block 6
Learning Outcome 5: the FSA's responsibilities and approach to regulation |
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What is the maximum amount of compensation that can be paid bythe Financial Services Compensation Scheme for long term insurance?
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90% of the claim with no upper limit.
Learning outcome 6: Apply the principles and rules as set out in the regulatory framework. |
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You have made a complaint to a firm regarding the loss you suffered through what you consider to be prro advice. Tou can expect the firm to:
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Acknowledge the complaint promptly and in writing
Supply you with a copy of the Complaints procedure Learning outcome 6: Apply the principles and rules as set out in the regulatory framework |
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The reports whicha firm is required to send to the FSA for its monitoring activities:
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* Are produced under prescribed requirements and timescales
* Include details of the number of staff undertaking different roles Learning outcome 6: Apply the principles and rules as set out in the regulatory framework |
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To determine whether or not an activity is regulated under the Financial Services and Markets Act 2000 which of the following factors would be taken into account?
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* The degree of continuity
* The scale of the activity * The existence of a commercial element Learning outcome 6: Apply the principles and rules as set out in the regulatory framework |
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Avril has recently taken up employment as a finacial adviser with an FSA regulated firm. This means that Avril will:
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* Need to be individually approved and registered by the FSA to carry out regulated activities
* Be carrying out 'controlled functions' Learning outcome 6: Apply the principles and rules as set out in the regulatory framework |
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The FSA's treating Customers Fairly initiative requires firms to:
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* Deliver a service of an adequate atandard
* Improve their procedures and processes to embed a standrad of fair treatment for all customers learning outome 7: Apply the regulatory advice framework in practice for the consumer |
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KFDs povided to clients must:
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* Be produced on paper or in electronic format
* Be produced to the same standard as the provider's marketing material learning outome 7: Apply the regulatory advice framework in practice for the consumer |
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Which of the follwoing is NOT a reason why advisers provide their clients with written documentation about products?
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To ensure that they know whichcompany is providing the product
Learning outcome 8: Understand the range of skills required when advising clients |
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Who within a firm is responsible for ensuring that the risks of conflicts of interest that the business ,ay be exposed to are addressed?
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Senior management
Learning outcome 9: understand the FSA's use of principles and outcomes based regulation to promote ethical and fair outcomes. |
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The way in which the Chancellor raises money for the Government to run the country is known as the:
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Fiscal policy
Learn outcome 1: UK financial services in its European and global context |
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Stephen has heard it is possible to lend money to a company as an investment. You tell him that he could do this by purchasing:
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Fixed interest stocks
Learn outcome 1: UK financial services in its European and global context |
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Which of the following is NOT a tax advantage of investing in a pension?
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Tax free income in retirement
Learn outcome 2: How the retail customer is served |
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Which of the following risks is NOT covered within Pillar 1 of the Capital Requirements Directive (CRD) reflect the capital's:
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Loss absorbency and the permanence
Learn outcome 5: FSA's responsibilities and approach to regulation |
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The ICOBS rules apply to:
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All new business and annual renewals
Learn outcome 5: FSA's responsibilities and approach to regulation |
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The Financial Services ad Markets Tribunal is under the control of:
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The Lord Chancellor's Department
Learn outcome 5: FSA's responsibilities and approach to regulation |
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An individual has made a request to a Data Controller for access to the manual records held about them. The Data Controller:
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* Can charge a fee of £10
* Can charge up to £50 if the records relate to health or education Learn outcome 6; Apply rules as set out in the regulatory framework |
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Which of the following types of policy are affected by the Consolidated Life Directive requirements?
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Pure protection policies
Learn outcome 7: Apply the regulatory advice framework in practice for the consumer |
