FCA - Regs wrong Q's
All of the following are true of the FCA, except:
A
The guarantor of the FCA is the Treasury
B
The FCA board is made up of executive and non-executive directors appointed
by the Crown
C
It has statutory objectives set out in the Financial Services Act 2012
D
It is responsible for conduct regulation for all authorised firms - CORRECT
ANSWER-B
Who regulates UK banks?
A
Her Majesty's Treasury
B
The Prudential Regulation Authority
C
The London Stock Exchange
D
The European Central Bank - CORRECT ANSWER-B, PRA is part of BOE
What is the purpose of the Pension Protection Fund?
A
To ensure pension companies do not become insolvent
B
To invest funds for auto-enrolment into work-based schemes
C
To ensure annuities are seen as viable post-pension-freedom legislation
D
To compensate members of insolvent final salary pension schemes - CORRECT
ANSWER-D, PPF compensates if people become insolvent and pension scheme
cannot afford to pay people promised pensions
Who is responsible for reducing risks to the financial system as a whole?
,A
Financial Policy Committee
B
National Crime Agency
C
Financial Conduct Authority
D
Her Majesty's Treasury - CORRECT ANSWER-A, PRA takes instructions from
FPC, which is part of BOE
Which one of the following statements concerning the Financial Policy
Committee (FPC) is correct? The FPC meets
A
Annually and produces an annual Financial Stability Report
B
Annually and produces a biannual Financial Stability Report
C
Quarterly and produces a biannual Financial Stability Report
D
Quarterly and produces an annual Financial Stability Report - CORRECT
ANSWER-C, FPC meets 4 times a year but MPC meets monthly
According to the provisions under Senior Management Arrangements, Systems
and Controls in the Regulator's Handbook, the responsibilities of directors must
be:
A
Clearly and appropriately apportioned
B
Reviewed by external auditors on an annual basis
C
Recorded and the records kept for three years from when the responsibilities
change
D
Clear, fair and not misleading - CORRECT ANSWER-A, records kept for 6 years
Which of the following bodies oversees the macro-economic and financial issues
that could cause instability in the UK?
,A
Competition and Markets Authority
B
Prudential Regulation Authority
C
Financial Conduct Authority
D
Financial Policy Committee - CORRECT ANSWER-D, aim of FPC is to gain a
bigger picture of the financial services and markets in order to better predict
problems that may occur
Who is responsible for the regulation of individual savings accounts (ISAs)?
A
Department of Business Innovation and Skills
B
HM Revenue and Customs
C
The Prudential Regulation Authority
D
The Stock Exchange - CORRECT ANSWER-B, ISA's are tax efficient savings
and investments
Which of the following statements are correct?
I
The FCA is responsible for ensuring consumers get a fair deal
II
The FCA is responsible for stability of the markets
III
The PRA is responsible for ensuring consumers get a fair deal
IV
The PRA is responsible for stability of the markets
A
I and III
B
I and IV
C
II and III
, D
II and IV - CORRECT ANSWER-B, The FCA is responsible for ensuring that
financial markets work well so that consumers get a fair deal, whilst the focus of
the PRA is on stability - the safety and soundness of deposit taking firms,
insurers and systematically important investment firms.
Which statement is the correct aim of the FCA's Consumer Duty?
A
To ensure that professional clients receive good outcomes when they purchase
products or services
B
To ensure that retail customers receive good outcomes when they purchase
products or services
C
To ensure that eligible counterparties receive good outcomes when they
purchase products or services
D
To ensure that financial services firms receive good outcomes when they
purchase products or services. - CORRECT ANSWER-B
The Financial Conduct Authority is funded by contributions from which of the
following?
A
The Treasury indirectly through taxes
B
The LSE through a levy charged on transactions
C
Regulated firms authorised under the Financial Services and Markets Act 2000
D
The FCA through its own activities on the market - CORRECT ANSWER-C,
Although the FCA is answerable to the Treasury, it is in fact a limited liability
company. It is also funded by the financial services industry - businesses
authorised under the FSMA 2000.
Which ONE of the following is not one of the Principles for Businesses laid down
for firms in the financial sector?
A
All of the following are true of the FCA, except:
A
The guarantor of the FCA is the Treasury
B
The FCA board is made up of executive and non-executive directors appointed
by the Crown
C
It has statutory objectives set out in the Financial Services Act 2012
D
It is responsible for conduct regulation for all authorised firms - CORRECT
ANSWER-B
Who regulates UK banks?
A
Her Majesty's Treasury
B
The Prudential Regulation Authority
C
The London Stock Exchange
D
The European Central Bank - CORRECT ANSWER-B, PRA is part of BOE
What is the purpose of the Pension Protection Fund?
A
To ensure pension companies do not become insolvent
B
To invest funds for auto-enrolment into work-based schemes
C
To ensure annuities are seen as viable post-pension-freedom legislation
D
To compensate members of insolvent final salary pension schemes - CORRECT
ANSWER-D, PPF compensates if people become insolvent and pension scheme
cannot afford to pay people promised pensions
Who is responsible for reducing risks to the financial system as a whole?
,A
Financial Policy Committee
B
National Crime Agency
C
Financial Conduct Authority
D
Her Majesty's Treasury - CORRECT ANSWER-A, PRA takes instructions from
FPC, which is part of BOE
Which one of the following statements concerning the Financial Policy
Committee (FPC) is correct? The FPC meets
A
Annually and produces an annual Financial Stability Report
B
Annually and produces a biannual Financial Stability Report
C
Quarterly and produces a biannual Financial Stability Report
D
Quarterly and produces an annual Financial Stability Report - CORRECT
ANSWER-C, FPC meets 4 times a year but MPC meets monthly
According to the provisions under Senior Management Arrangements, Systems
and Controls in the Regulator's Handbook, the responsibilities of directors must
be:
A
Clearly and appropriately apportioned
B
Reviewed by external auditors on an annual basis
C
Recorded and the records kept for three years from when the responsibilities
change
D
Clear, fair and not misleading - CORRECT ANSWER-A, records kept for 6 years
Which of the following bodies oversees the macro-economic and financial issues
that could cause instability in the UK?
,A
Competition and Markets Authority
B
Prudential Regulation Authority
C
Financial Conduct Authority
D
Financial Policy Committee - CORRECT ANSWER-D, aim of FPC is to gain a
bigger picture of the financial services and markets in order to better predict
problems that may occur
Who is responsible for the regulation of individual savings accounts (ISAs)?
A
Department of Business Innovation and Skills
B
HM Revenue and Customs
C
The Prudential Regulation Authority
D
The Stock Exchange - CORRECT ANSWER-B, ISA's are tax efficient savings
and investments
Which of the following statements are correct?
I
The FCA is responsible for ensuring consumers get a fair deal
II
The FCA is responsible for stability of the markets
III
The PRA is responsible for ensuring consumers get a fair deal
IV
The PRA is responsible for stability of the markets
A
I and III
B
I and IV
C
II and III
, D
II and IV - CORRECT ANSWER-B, The FCA is responsible for ensuring that
financial markets work well so that consumers get a fair deal, whilst the focus of
the PRA is on stability - the safety and soundness of deposit taking firms,
insurers and systematically important investment firms.
Which statement is the correct aim of the FCA's Consumer Duty?
A
To ensure that professional clients receive good outcomes when they purchase
products or services
B
To ensure that retail customers receive good outcomes when they purchase
products or services
C
To ensure that eligible counterparties receive good outcomes when they
purchase products or services
D
To ensure that financial services firms receive good outcomes when they
purchase products or services. - CORRECT ANSWER-B
The Financial Conduct Authority is funded by contributions from which of the
following?
A
The Treasury indirectly through taxes
B
The LSE through a levy charged on transactions
C
Regulated firms authorised under the Financial Services and Markets Act 2000
D
The FCA through its own activities on the market - CORRECT ANSWER-C,
Although the FCA is answerable to the Treasury, it is in fact a limited liability
company. It is also funded by the financial services industry - businesses
authorised under the FSMA 2000.
Which ONE of the following is not one of the Principles for Businesses laid down
for firms in the financial sector?
A
