Uk Financial Regulation Mock Exam
Questions All Answered Correctly 2026-
2027 Edition.
What is one of the FCA's operational objectives? - Answer To secure an appropriate degree of
protection for consumers
Appeals against FCA decisions are normally considered by which body? - Answer Upper
Tribunal
All of the following are operational objectives given to the FCA under the FSA 2012 except: -
Answer Ensuring that the relevant markets function well
The FCA 'management and control' Principle for business requires firms to have adequate
systems in place specifically relating to: - Answer Risk management
Which of the following is a statutory consequence of contravening the general prohibition? -
Answer Financial services agreements are likely to be unforceable
Which of the following must be directly authorised under the FSMA to carry on regulated
activities? - Answer Hedge fund manager
Which of the following is an excluded activity and hence does not require authorisation under
FSMA? - Answer Dealing as principal in connection with an employee share scheme
Which of the following is a specified investment under the Regulated Activities Order? - Answer
A cash deposit held with a bank
Which of the following may conduct a limited range of regulated activity under Part 20 FSMA
regime, without the need for authorisation? - Answer Accountants
In order to satisfy suitability threshold for authorisation, firms are required to: - Answer Prove
that they are fit and proper
Which factor is typically not considered in assessment over fitness and propriety of a person
performing SMFs within authorised firms? - Answer Experience and seniority
, What is the FCA's general approach to the supervision of authorised firms? - Answer Risk
based
Which of the following are statutory notices? - Answer Warning, decision and supervisory
notices
If someone deposits criminally obtained banknotes in a building society account what stage of
the money laundering process is this? - Answer Placement
What action should a MLRO take if a member of staff has identified a suspicious transaction? -
Answer Make a report to the NCA
Which of the following instruments are caught under the insider dealing legislation? - Answer
Debt securities
Which of the following is an inside deal? - Answer An investment manager buys shares in their
brothers company knowing that it is about to be taken over
Which of the following is a special defence against the charge of insider dealing under the
criminal jutsice act? - Answer A market maker is acting in good faith
An individual has acquired inside information and has encouraged a friend to deal in the
affected securities. Which of the following is true? - Answer The individual is likely to have
committed an offence
To satisfy the definition of market abuse an individuals behaviour must - Answer be likely to
give a false or misleading impression of the supply, demand or value of the investments
concerned
The guidance provided by the JMLSG - Answer highlights best practice that has been approved
by the Treasury
Which of the following is an offence under POCA 2002? - Answer Acquiring, use or possession
of property without knowledge of criminal activities
One of the two broad reasons for the JMLSG customer due diligence requirements is to help the
firm be satisfied that the customer is who the firm say they are and there are no legal reasons
preventing the relationship, the other reason is to: - Answer Assist law enforcement
Questions All Answered Correctly 2026-
2027 Edition.
What is one of the FCA's operational objectives? - Answer To secure an appropriate degree of
protection for consumers
Appeals against FCA decisions are normally considered by which body? - Answer Upper
Tribunal
All of the following are operational objectives given to the FCA under the FSA 2012 except: -
Answer Ensuring that the relevant markets function well
The FCA 'management and control' Principle for business requires firms to have adequate
systems in place specifically relating to: - Answer Risk management
Which of the following is a statutory consequence of contravening the general prohibition? -
Answer Financial services agreements are likely to be unforceable
Which of the following must be directly authorised under the FSMA to carry on regulated
activities? - Answer Hedge fund manager
Which of the following is an excluded activity and hence does not require authorisation under
FSMA? - Answer Dealing as principal in connection with an employee share scheme
Which of the following is a specified investment under the Regulated Activities Order? - Answer
A cash deposit held with a bank
Which of the following may conduct a limited range of regulated activity under Part 20 FSMA
regime, without the need for authorisation? - Answer Accountants
In order to satisfy suitability threshold for authorisation, firms are required to: - Answer Prove
that they are fit and proper
Which factor is typically not considered in assessment over fitness and propriety of a person
performing SMFs within authorised firms? - Answer Experience and seniority
, What is the FCA's general approach to the supervision of authorised firms? - Answer Risk
based
Which of the following are statutory notices? - Answer Warning, decision and supervisory
notices
If someone deposits criminally obtained banknotes in a building society account what stage of
the money laundering process is this? - Answer Placement
What action should a MLRO take if a member of staff has identified a suspicious transaction? -
Answer Make a report to the NCA
Which of the following instruments are caught under the insider dealing legislation? - Answer
Debt securities
Which of the following is an inside deal? - Answer An investment manager buys shares in their
brothers company knowing that it is about to be taken over
Which of the following is a special defence against the charge of insider dealing under the
criminal jutsice act? - Answer A market maker is acting in good faith
An individual has acquired inside information and has encouraged a friend to deal in the
affected securities. Which of the following is true? - Answer The individual is likely to have
committed an offence
To satisfy the definition of market abuse an individuals behaviour must - Answer be likely to
give a false or misleading impression of the supply, demand or value of the investments
concerned
The guidance provided by the JMLSG - Answer highlights best practice that has been approved
by the Treasury
Which of the following is an offence under POCA 2002? - Answer Acquiring, use or possession
of property without knowledge of criminal activities
One of the two broad reasons for the JMLSG customer due diligence requirements is to help the
firm be satisfied that the customer is who the firm say they are and there are no legal reasons
preventing the relationship, the other reason is to: - Answer Assist law enforcement
