UK Regulation and Professional Integrity
Questions and Answers
What is the punishment for breaching the general prohibition? – 2
years imprisonment and/or an unlimited fine.
Who is the Regulatory Decisions Committee (RDC)? – An
independent FCA committee that makes statutory notice decisions instead
of the enforcement team.
Who sets UK interest rates? – The Monetary Policy Committee (MPC).
Who sets monetary policy in the UK? – The MPC of the Bank of
England.
Who is responsible for keeping inflation within range? – The Bank
of England.
What are the three measures of economic activity? – National
income, Gross National Product (GNP), Gross Domestic Product (GDP).
What is the role of the Federal Reserve? – Holds reserves of
depository institutions and makes loans to them.
What does the OCC do? – Regulates and supervises US national banks.
What does FINRA do? – Independent regulator for US securities firms.
How long must firms retain term agreement records? – Five years
or the duration of the client relationship (pensions: indefinitely).
What are the three SMCR firm categories? – Limited, Core, Enhanced.
What are the six core MiFID activities? –
1. Reception and transmission of orders
2. Execution of orders
3. Investment advice
4. Managing investments
5. Underwriting and placing
6. Operating an MTF
What are the FCA’s three operational objectives? –
1. Protect consumers
2. Protect market integrity
3. Promote competition
1
, UK Regulation and Professional Integrity
What are the five Threshold Conditions? –
1. Location of offices
2. Effective supervision
3. Appropriate resources
4. Suitability
5. Business model
How long does a complainant have to complain? – 6 years from the
event or 3 years from awareness.
What is the maximum punishment for money laundering? – 14
years imprisonment.
Who must the MLRO report suspicious activity to? – The National
Crime Agency (NCA).
How long is the closed period before annual/interim results? – 30
days.
What are the three goals of the FCA’s 3-year strategy? –
1. Reduce and prevent serious harm
2. Set and test higher standards
3. Promote competition and positive change
How long must data breaches be reported to the ICO? – Within 72
hours.
How many members make up the MPC? – 9 members.
What is the maximum bankruptcy threshold? – £5,000 minimum
debt required.
Who can prosecute insider dealing? – FCA, Secretary of State for
Business, The Crown.
How long does the FCA have to respond to a super complaint? – 90
days.
What are the three FCA penalty principles? – Deterrence,
disgorgement, discipline.
How often must CASS audits be performed? – Annually by an
external auditor (submitted to the FCA).
What is the four-fold test for best execution? –
1. Client initiated transaction
2
Questions and Answers
What is the punishment for breaching the general prohibition? – 2
years imprisonment and/or an unlimited fine.
Who is the Regulatory Decisions Committee (RDC)? – An
independent FCA committee that makes statutory notice decisions instead
of the enforcement team.
Who sets UK interest rates? – The Monetary Policy Committee (MPC).
Who sets monetary policy in the UK? – The MPC of the Bank of
England.
Who is responsible for keeping inflation within range? – The Bank
of England.
What are the three measures of economic activity? – National
income, Gross National Product (GNP), Gross Domestic Product (GDP).
What is the role of the Federal Reserve? – Holds reserves of
depository institutions and makes loans to them.
What does the OCC do? – Regulates and supervises US national banks.
What does FINRA do? – Independent regulator for US securities firms.
How long must firms retain term agreement records? – Five years
or the duration of the client relationship (pensions: indefinitely).
What are the three SMCR firm categories? – Limited, Core, Enhanced.
What are the six core MiFID activities? –
1. Reception and transmission of orders
2. Execution of orders
3. Investment advice
4. Managing investments
5. Underwriting and placing
6. Operating an MTF
What are the FCA’s three operational objectives? –
1. Protect consumers
2. Protect market integrity
3. Promote competition
1
, UK Regulation and Professional Integrity
What are the five Threshold Conditions? –
1. Location of offices
2. Effective supervision
3. Appropriate resources
4. Suitability
5. Business model
How long does a complainant have to complain? – 6 years from the
event or 3 years from awareness.
What is the maximum punishment for money laundering? – 14
years imprisonment.
Who must the MLRO report suspicious activity to? – The National
Crime Agency (NCA).
How long is the closed period before annual/interim results? – 30
days.
What are the three goals of the FCA’s 3-year strategy? –
1. Reduce and prevent serious harm
2. Set and test higher standards
3. Promote competition and positive change
How long must data breaches be reported to the ICO? – Within 72
hours.
How many members make up the MPC? – 9 members.
What is the maximum bankruptcy threshold? – £5,000 minimum
debt required.
Who can prosecute insider dealing? – FCA, Secretary of State for
Business, The Crown.
How long does the FCA have to respond to a super complaint? – 90
days.
What are the three FCA penalty principles? – Deterrence,
disgorgement, discipline.
How often must CASS audits be performed? – Annually by an
external auditor (submitted to the FCA).
What is the four-fold test for best execution? –
1. Client initiated transaction
2
