FCA 80 QUIZ QUESTIONS CORRECTLY ANSWERED

Define the FCA Principles for Business (PRIN) - ️️A general statement of the fundamental obligations of all authorised firms under the regulatory system How can firms pay fees in installments? - ️️Via Premium Credit Ltd How is the FCA funded? - ️️By levies on firms which are placed in different fee blocks based on their activities and risks How long can an individual cover for a senior manager in an emergency? - ️️12 weeks How long should firm's keep a record of benefits for? - ️️5 years How much can firms charge customers for phone calls? - ️️Basic rate How much is a Variation of Permission fee? - ️️Charged at 50% of the equivalent application fee of a new firm in the new fee-block or £250 if fee-block won't change How much is an application fee for a new firm? - ️️£1500 (non-refundable) How often should a firm holding client money for designated investment purposes carry out reconciliation of client bank account records? - ️️Every business day Other than the FCA, who else do firms pay fees to? - ️️FOS, FSCS, MAPS What are a firm's obligations under COBS? - ️️Do not accept inducements, volume overrides of commission are forbidden for intermediaries of packaged products, legacy commission can only be paid to intermediary responsible for sale, ban on direct benefits (non-monetary incentives) What are authorised firms responsible for? - ️️Employees, agents and ARs compliance with FSMA, that senior managers are approved, a firm is responsible for advice given by its representatives and can compensate if needed What are periodic fees? - ️️Annual fees paid by firms to FCA. Annual funding requirement published yearly by FCA who split it among the fee-blocks What are Product Intervention and Product Governance rules? - ️️Made under FSMA and can be made without consultation and last no more than 12 months What are regulated mortgage contracts? - ️️Lender provides credit to an individual and obligation is secured by a legal first mortgage on UK land or at least 40% of property is used a dwelling. This means that commercial mortgages are not regulated.