PCR Guide
2021/22 – Section A: Code of Conduct
– Section B: Money Laundering
– Section C: Financial Services
0
,Table of Contents
SECTION A: CODE OF CONDUCT..................................................................................................................... 2
SECTION A LONG FORM EXAM PLANS........................................................................................................... 2
1. CLIENT CARE EXAM PLAN.....................................................................................................................................2
2. CONFLICTS OF INTEREST EXAM PLAN......................................................................................................................4
3. CONFIDENTIALITY AND DISCLOSURE EXAM PLAN.......................................................................................................7
SECTION B: MONEY LAUNDERING OFFENCES................................................................................................. 9
SECTION B LONG FORM EXAM PLANS............................................................................................................ 9
POCA LONG FORM PLAN.........................................................................................................................................9
Direct involvement offences...........................................................................................................................9
Disclosure offences – failure to disclose: regulated sector...........................................................................10
Penalties (s.334)...........................................................................................................................................11
defences For a direct involvement (ss 327-329) offence:.............................................................................11
defences For a disclosure (s.330/331) offence:............................................................................................12
MLR/CDD LONG FORM PLAN.................................................................................................................................13
Standard CDD – Regulation 28(1).................................................................................................................14
Simplified CDD – Regulation 37....................................................................................................................15
Enhanced CDD – Regulation 33....................................................................................................................15
SECTION C: FINANCIAL SERVICES................................................................................................................. 20
SECTION C LONG FORM EXAM PLAN............................................................................................................ 20
INTRODUCTION................................................................................................................................................... 21
STEP 1: IS THE INVESTMENT ‘SPECIFIED’ UNDER FSMA (PART III RAO)............................................................................21
STEP 2: IS THE ACTIVITY A ‘SEPCIFIED ACTIVITY’ UNDER FSMA? (PART II RAO).................................................................22
STEP 3: IS THE ACTIVITY EXCLUDED UNDER FSMA?.....................................................................................................22
additional Details of exclusions mentioned above.......................................................................................24
DOES THE ACTIVITY FULFIL THE BASIC CONDITIONS IN S.327 FSMA AND SRA SCOPE RULE 2?..............................................25
(1) – do you satisfy the conditions of s.327 FSMA?......................................................................................26
(2) – do you satisfy the Scope Rules (specifically Rule 2):.............................................................................27
1
, Section A: Code of Conduct
SECTION A: CODE OF CONDUCT
SECTION A LONG FORM EXAM PLANS
Answer Structure
1. Identify the issue(s)?
2. Say why it is an issue?
3. How do you resolve the issue?
Principles:
1) uphold the proper administration of justice
2) uphold public trust in profession
3) independence
4) honesty
5) integrity
6) equality diversity and inclusion
7) bests interest of client
1. CLIENT CARE EXAM PLAN
Knowing your client
There is an obligation under CCS 8.1 (CCF 7.1(c)) to identify your client
o If an individual, identification e.g. passport
o If a company, evidence of incorporation, articles of association, identification from
key persons e.g. directors
o If a director, ask for board minutes showing authorisation for the director to instruct
us on this deal + do a company search at Companies House to confirm director’s
status
Do not accept instructions if:
o You will breach the law/the Code (CCS 6)
o You cannot represent the client with competence and diligence (CCF 4.2)
being too busy
outside your area of expertise
If you are acting under 3rd party instruction, make sure the 3rd party has authority to do
so (CCS 3.1/CCF 4.1)
Service and Competence
Take into account your client’s individual attributes, needs and circumstances (CCS 3.4
and CCF 4.2)
Ensure the service you provide is competent and delivered in a timely manner (CCS
3.2 and CCF 4.2)
Maintain your competence to carry out your role and keep your professional knowledge
and skills up to date (CCS 3.3)
2
2021/22 – Section A: Code of Conduct
– Section B: Money Laundering
– Section C: Financial Services
0
,Table of Contents
SECTION A: CODE OF CONDUCT..................................................................................................................... 2
SECTION A LONG FORM EXAM PLANS........................................................................................................... 2
1. CLIENT CARE EXAM PLAN.....................................................................................................................................2
2. CONFLICTS OF INTEREST EXAM PLAN......................................................................................................................4
3. CONFIDENTIALITY AND DISCLOSURE EXAM PLAN.......................................................................................................7
SECTION B: MONEY LAUNDERING OFFENCES................................................................................................. 9
SECTION B LONG FORM EXAM PLANS............................................................................................................ 9
POCA LONG FORM PLAN.........................................................................................................................................9
Direct involvement offences...........................................................................................................................9
Disclosure offences – failure to disclose: regulated sector...........................................................................10
Penalties (s.334)...........................................................................................................................................11
defences For a direct involvement (ss 327-329) offence:.............................................................................11
defences For a disclosure (s.330/331) offence:............................................................................................12
MLR/CDD LONG FORM PLAN.................................................................................................................................13
Standard CDD – Regulation 28(1).................................................................................................................14
Simplified CDD – Regulation 37....................................................................................................................15
Enhanced CDD – Regulation 33....................................................................................................................15
SECTION C: FINANCIAL SERVICES................................................................................................................. 20
SECTION C LONG FORM EXAM PLAN............................................................................................................ 20
INTRODUCTION................................................................................................................................................... 21
STEP 1: IS THE INVESTMENT ‘SPECIFIED’ UNDER FSMA (PART III RAO)............................................................................21
STEP 2: IS THE ACTIVITY A ‘SEPCIFIED ACTIVITY’ UNDER FSMA? (PART II RAO).................................................................22
STEP 3: IS THE ACTIVITY EXCLUDED UNDER FSMA?.....................................................................................................22
additional Details of exclusions mentioned above.......................................................................................24
DOES THE ACTIVITY FULFIL THE BASIC CONDITIONS IN S.327 FSMA AND SRA SCOPE RULE 2?..............................................25
(1) – do you satisfy the conditions of s.327 FSMA?......................................................................................26
(2) – do you satisfy the Scope Rules (specifically Rule 2):.............................................................................27
1
, Section A: Code of Conduct
SECTION A: CODE OF CONDUCT
SECTION A LONG FORM EXAM PLANS
Answer Structure
1. Identify the issue(s)?
2. Say why it is an issue?
3. How do you resolve the issue?
Principles:
1) uphold the proper administration of justice
2) uphold public trust in profession
3) independence
4) honesty
5) integrity
6) equality diversity and inclusion
7) bests interest of client
1. CLIENT CARE EXAM PLAN
Knowing your client
There is an obligation under CCS 8.1 (CCF 7.1(c)) to identify your client
o If an individual, identification e.g. passport
o If a company, evidence of incorporation, articles of association, identification from
key persons e.g. directors
o If a director, ask for board minutes showing authorisation for the director to instruct
us on this deal + do a company search at Companies House to confirm director’s
status
Do not accept instructions if:
o You will breach the law/the Code (CCS 6)
o You cannot represent the client with competence and diligence (CCF 4.2)
being too busy
outside your area of expertise
If you are acting under 3rd party instruction, make sure the 3rd party has authority to do
so (CCS 3.1/CCF 4.1)
Service and Competence
Take into account your client’s individual attributes, needs and circumstances (CCS 3.4
and CCF 4.2)
Ensure the service you provide is competent and delivered in a timely manner (CCS
3.2 and CCF 4.2)
Maintain your competence to carry out your role and keep your professional knowledge
and skills up to date (CCS 3.3)
2
