FCA - REGS WRONG QUESTIONS & ANSWERS
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 - Answers- 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 - Answers- B, PRA 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 - Answers- 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 - Answers- 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 - Answers- 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 - Answers- 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 - Answers- 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. - Answers- 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 - Answers- 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.
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 - Answers- 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 - Answers- A, PRA takes instructions from FPC, which is part of
BOE
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 - Answers- 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 - Answers- B, PRA 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 - Answers- 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 - Answers- 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 - Answers- 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 - Answers- 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 - Answers- 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. - Answers- 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 - Answers- 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.
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 - Answers- 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 - Answers- A, PRA takes instructions from FPC, which is part of
BOE
