Canxaxthirdxpartyxappealxtoxthextribunalxonxbehalfxofxanxauthorisedxfirmxagainstxaxdecisionxnotice?x
-xxCORRECTxANSWERSYes,xifxthexappealxisxmadexwithinx28xdaysxofxthexnoticexbeingxissued
HowxisxthexFCAxfunded?x-xxCORRECTxANSWERSThexfeesxarexbasedxonxfee-
blocksxaccordingxtoxthexregulatedxactivitiesxofxthexfirm
Trevorxhasxjustxretiredxandxwhenxassessingxhisxavailablexfundsxwithxwhichxtoxfundxhisxretirementxh
exdiscoversxaxsharexaccountxbelongingxtoxhimxthatxhexhadxforgottenxabout.xUnfortunately,xasxthexa
ccountxhadxbeenxdormantxandxunclaimedxforxwellxoverx12xyears,xthexfirmxholdingxthexaccountxhadx
ceasedxtoxtreatxitxasxclientsxassetsxandxhasxpaidxthexvaluexofxthexaccount,xatxthextimex£23,500,xtoxc
harity.xHadxthexaccountxremainedxactivexitxwouldxnowxbexworthx£32,000.xWhatxclaimxonxthexfunds
xdoesxTrevorxhave?x-
xxCORRECTxANSWERSTrevorxdoesxhavexaxclaimxonxthexfunds.xAlthoughxthexaccountxisxnoxlongerxcon
sideredxclientsxassets,xthexgoverningxbodyxofxthexfirmxmustxunconditionallyxpayxTrevorx£23,500xifx
hexclaims.
ThexmainxpurposexofxthexSYSCxrequirementsxdoxnotxincludexwhichxofxthexfollowing?x
A)xencouragingxdirectorsxandxseniorxmanagersxtoxtakexresponsibilityxforxarrangementsxwithinxthexf
irmxthatxarexlikelyxtoxbexofxinterestxtoxthexFCAx
B)xensurexthatxaxfirmxtakesxreasonablexcarextoxorganisexandxcontrolxitsxaffairsxresponsiblyxandxeffec
tively,xwithxadequatexsystemsxofxriskxmanagementx
C)xvestxresponsibilityxforxeffectivexorganisationxinxspecificxdirectorsxandxseniorxmanagers
,D)xensurexthatxdirectorsxandxseniorxmanagersxarexablextoxmonitorxtransactionsxfromxthexperspecti
vexofxanti-moneyxlaunderingxrequirementsx-
xxCORRECTxANSWERSD)xinsurexthatxdirectorsxandxseniorxmanagersxarexablextoxmonitorxtransaction
sxfromxthexperspectivexofxanti-moneyxlaunderingxrequirements
UnderxSYSC,xwhichxofxthexfollowingxbestxdescribesxanxFCAxauthorisedxfirmsxobligationxwithxregardx
toxconflictsxofxinterest?
A)xaxconflictsxofxinterestxpolicyxshouldxbexagreedxwithxandxsignedxbyxaxretailxclient
B)xeffective,xorganisational,xandxadministrativexarrangementsxshouldxbeximplementedxtoxpreventx
conflictsxadverselyxaffectingxthexfirm
C)xensurexinformationxcontrolsxandxbarriersxdoxnotxpreventxthexflowxofxexternallyxfacingxinformati
onxthroughoutxthexfirm
D)xwherexspecificxconflictsxcannotxbe,xthatxisxthexwayxensurexthatxthisxisxdisclosedxclientsxbeforextra
dingx-
xxCORRECTxANSWERSD)xwherexisxspecificxconflictsxcannotxbexmanagedxaway,xensurexthatxthisxisxdis
closedxclientsxbeforextrading
Whichxofxthexfollowingxisxnotxaxprincipal,xaccordingxtoxfairxtreatmentxofxcustomers?xConsumers:
A)xcanxbexconfidentxthatxaxtradexhasxbeenxexecutedxatxthexbestxprice
B)xdoxnotxfacexunreasonable,xpostxsale,xbarriersxtoxchangingxthexproduct
,C)xarexprovidedxwithxproductsxthatxperformxasxfirmsxhavexledxthemxtoxexpect
D)xshouldxreceivexsuitablexadvicex-
xxCORRECTxANSWERSA)xcanxbexconfidentxthatxaxtradexhasxbeenxexecutedxasxaxbestxprice
Marketxabusexinvolvingxmanipulatingxdevicesxwouldxcover
A)xlifexinsurance
B)xunitsxinxunitxtrusts
C)xsharesxinxanxOEIC
D)xsharesxinxanxinvestmentxtrustx-xxCORRECTxANSWERSD)xsharesxinxanxinvestmentxtrust
Axfinancialxadvisorxgoesxtoxaxcorporatexevent.xAtxthexcorporatexevent.xShexmeetsxthexwifexofxaxdire
ctorxofxGGHxPLC,xwhoxexpressesxherxconcernsxaboutxherxhusbandxwhoxisxworkingxeveryxwakingxho
urxduextoxhisxcompaniesxbelievexthatxitxmayxbexsubjectxtoxaxhostilextakeoverxbidxbasedxonxthexinfor
mationxshexrecommendsxtoxherxclientsxtoxbuyxthexsharesxinxGGHxplc,xwhichxofxthexfollowingxbestxd
escribesxthexactionxinxreferencextoxethicalxbehaviour?
A)xnoxbreachxoccursxasxthexinformationxwasxgainedxoutsidexofxherxplacexofxwork
B)xnoxbreachxoccursxasxthexinformationxwasxusedxtoxbenefitxherxclients
C)xaxbreachxoccursxasxshexencouragedxherxclientsxtoxdealxonxinsidexinformation
, D)xnoxbreachxoccursxasxthexinformationxisxinxrelationxtoxaxtakeoverx-
xxCORRECTxANSWERSC)xaxbreachxoccursxasxshexencouragedxherxclientsxtoxdealxonxinsidexinformatio
n
WhichxofxthexfollowingxisxfalsexinxrelationxtoxthexsalexofxcashxdepositxISA'sxsoldxviaxaxdistancexcontr
actxandxwithoutxadvice?x
A)xaxfirmxmustxofferxatxleastxax14xcalendarxdayxreflectionxperiod
B)xclientxhasxaxrightxtoxcancel
C)xthexmaximumxperiodxofxreflection,xisx30xdays
D)xthexfirmxshouldxsendxaxpostxsalexnoticexdetailingxthexcustomersxrightsx-
xxCORRECTxANSWERSC)xthexmaximumxperiodxofxreflection,xisx30xdays
Whichxofxthexfollowingxbestxreflectsxthexriskxbasedxandxproportionatexapproachxtoxthexpreventionx
ofxmoneyxlaunderingxasxspecifiedxinxJMLSGxguidance?
A)xIxneedxtoxallocatexresponsibilitiesxforxriskxmitigation,xbutxnotxnecessarilyxtoxaxspecificxperson
B)xandxabilityxtoxremovexthexidentificationxandxmonitoringxtracksxwherexaxfirmxdeemsxthemxunnec
essary
C)xtakingxappropriatexstepsxtoxverifyxthexidentityxandxbusinessxofxcustomers
D)xrecognitionxthatxstaffxcanxprioritisexthexreportingxofxsuspicionsxbasedxonxtheirximportancex-
xxCORRECTxANSWERSC)xtakingxappropriatexstepsxtoxverifyxthexidentityxandxbusinessxofxcustomers
-xxCORRECTxANSWERSYes,xifxthexappealxisxmadexwithinx28xdaysxofxthexnoticexbeingxissued
HowxisxthexFCAxfunded?x-xxCORRECTxANSWERSThexfeesxarexbasedxonxfee-
blocksxaccordingxtoxthexregulatedxactivitiesxofxthexfirm
Trevorxhasxjustxretiredxandxwhenxassessingxhisxavailablexfundsxwithxwhichxtoxfundxhisxretirementxh
exdiscoversxaxsharexaccountxbelongingxtoxhimxthatxhexhadxforgottenxabout.xUnfortunately,xasxthexa
ccountxhadxbeenxdormantxandxunclaimedxforxwellxoverx12xyears,xthexfirmxholdingxthexaccountxhadx
ceasedxtoxtreatxitxasxclientsxassetsxandxhasxpaidxthexvaluexofxthexaccount,xatxthextimex£23,500,xtoxc
harity.xHadxthexaccountxremainedxactivexitxwouldxnowxbexworthx£32,000.xWhatxclaimxonxthexfunds
xdoesxTrevorxhave?x-
xxCORRECTxANSWERSTrevorxdoesxhavexaxclaimxonxthexfunds.xAlthoughxthexaccountxisxnoxlongerxcon
sideredxclientsxassets,xthexgoverningxbodyxofxthexfirmxmustxunconditionallyxpayxTrevorx£23,500xifx
hexclaims.
ThexmainxpurposexofxthexSYSCxrequirementsxdoxnotxincludexwhichxofxthexfollowing?x
A)xencouragingxdirectorsxandxseniorxmanagersxtoxtakexresponsibilityxforxarrangementsxwithinxthexf
irmxthatxarexlikelyxtoxbexofxinterestxtoxthexFCAx
B)xensurexthatxaxfirmxtakesxreasonablexcarextoxorganisexandxcontrolxitsxaffairsxresponsiblyxandxeffec
tively,xwithxadequatexsystemsxofxriskxmanagementx
C)xvestxresponsibilityxforxeffectivexorganisationxinxspecificxdirectorsxandxseniorxmanagers
,D)xensurexthatxdirectorsxandxseniorxmanagersxarexablextoxmonitorxtransactionsxfromxthexperspecti
vexofxanti-moneyxlaunderingxrequirementsx-
xxCORRECTxANSWERSD)xinsurexthatxdirectorsxandxseniorxmanagersxarexablextoxmonitorxtransaction
sxfromxthexperspectivexofxanti-moneyxlaunderingxrequirements
UnderxSYSC,xwhichxofxthexfollowingxbestxdescribesxanxFCAxauthorisedxfirmsxobligationxwithxregardx
toxconflictsxofxinterest?
A)xaxconflictsxofxinterestxpolicyxshouldxbexagreedxwithxandxsignedxbyxaxretailxclient
B)xeffective,xorganisational,xandxadministrativexarrangementsxshouldxbeximplementedxtoxpreventx
conflictsxadverselyxaffectingxthexfirm
C)xensurexinformationxcontrolsxandxbarriersxdoxnotxpreventxthexflowxofxexternallyxfacingxinformati
onxthroughoutxthexfirm
D)xwherexspecificxconflictsxcannotxbe,xthatxisxthexwayxensurexthatxthisxisxdisclosedxclientsxbeforextra
dingx-
xxCORRECTxANSWERSD)xwherexisxspecificxconflictsxcannotxbexmanagedxaway,xensurexthatxthisxisxdis
closedxclientsxbeforextrading
Whichxofxthexfollowingxisxnotxaxprincipal,xaccordingxtoxfairxtreatmentxofxcustomers?xConsumers:
A)xcanxbexconfidentxthatxaxtradexhasxbeenxexecutedxatxthexbestxprice
B)xdoxnotxfacexunreasonable,xpostxsale,xbarriersxtoxchangingxthexproduct
,C)xarexprovidedxwithxproductsxthatxperformxasxfirmsxhavexledxthemxtoxexpect
D)xshouldxreceivexsuitablexadvicex-
xxCORRECTxANSWERSA)xcanxbexconfidentxthatxaxtradexhasxbeenxexecutedxasxaxbestxprice
Marketxabusexinvolvingxmanipulatingxdevicesxwouldxcover
A)xlifexinsurance
B)xunitsxinxunitxtrusts
C)xsharesxinxanxOEIC
D)xsharesxinxanxinvestmentxtrustx-xxCORRECTxANSWERSD)xsharesxinxanxinvestmentxtrust
Axfinancialxadvisorxgoesxtoxaxcorporatexevent.xAtxthexcorporatexevent.xShexmeetsxthexwifexofxaxdire
ctorxofxGGHxPLC,xwhoxexpressesxherxconcernsxaboutxherxhusbandxwhoxisxworkingxeveryxwakingxho
urxduextoxhisxcompaniesxbelievexthatxitxmayxbexsubjectxtoxaxhostilextakeoverxbidxbasedxonxthexinfor
mationxshexrecommendsxtoxherxclientsxtoxbuyxthexsharesxinxGGHxplc,xwhichxofxthexfollowingxbestxd
escribesxthexactionxinxreferencextoxethicalxbehaviour?
A)xnoxbreachxoccursxasxthexinformationxwasxgainedxoutsidexofxherxplacexofxwork
B)xnoxbreachxoccursxasxthexinformationxwasxusedxtoxbenefitxherxclients
C)xaxbreachxoccursxasxshexencouragedxherxclientsxtoxdealxonxinsidexinformation
, D)xnoxbreachxoccursxasxthexinformationxisxinxrelationxtoxaxtakeoverx-
xxCORRECTxANSWERSC)xaxbreachxoccursxasxshexencouragedxherxclientsxtoxdealxonxinsidexinformatio
n
WhichxofxthexfollowingxisxfalsexinxrelationxtoxthexsalexofxcashxdepositxISA'sxsoldxviaxaxdistancexcontr
actxandxwithoutxadvice?x
A)xaxfirmxmustxofferxatxleastxax14xcalendarxdayxreflectionxperiod
B)xclientxhasxaxrightxtoxcancel
C)xthexmaximumxperiodxofxreflection,xisx30xdays
D)xthexfirmxshouldxsendxaxpostxsalexnoticexdetailingxthexcustomersxrightsx-
xxCORRECTxANSWERSC)xthexmaximumxperiodxofxreflection,xisx30xdays
Whichxofxthexfollowingxbestxreflectsxthexriskxbasedxandxproportionatexapproachxtoxthexpreventionx
ofxmoneyxlaunderingxasxspecifiedxinxJMLSGxguidance?
A)xIxneedxtoxallocatexresponsibilitiesxforxriskxmitigation,xbutxnotxnecessarilyxtoxaxspecificxperson
B)xandxabilityxtoxremovexthexidentificationxandxmonitoringxtracksxwherexaxfirmxdeemsxthemxunnec
essary
C)xtakingxappropriatexstepsxtoxverifyxthexidentityxandxbusinessxofxcustomers
D)xrecognitionxthatxstaffxcanxprioritisexthexreportingxofxsuspicionsxbasedxonxtheirximportancex-
xxCORRECTxANSWERSC)xtakingxappropriatexstepsxtoxverifyxthexidentityxandxbusinessxofxcustomers
