Financial and Business Skills:
EXAM STRUCTURE
Part A: 10 MCQs (3 marks each)
Part B:
o Q1 Law (30 marks) – start with this
o Q2 MISC (15 marks) – last to write
o Q3 Investment Strategy (25 marks) – second question to write
Bring ID to exam
The exam will be 90 minutes:
o 5 minutes to read all, 10 for MCQs, Q1 30 mins, Q2 10 mins and Q3 20 mins
Results will arrive in 6 to 8 weeks
Online Module to complete within 6 weeks of the course
Q1 Q2 Q3
Page 5 – investments Page 122 – COB rules Page 57 – Funds
Page 7 – Regulated Activity Page 138 – Money Laundering Page 64 – comparison of funds
(securities) Background Page 50 – SPIBS/GIBs/GGBs
Page 8 – Regulated Activity Page 145 – Money Laundering Page 39 – Mortgages
(RMCs and IDAs) Regulations 2017 Page 40 – Life Insurance
Page 9 – Exam methodology Page 146 – Customer Due Page 48 – Pensions
Page 75 – Scope Rules Diligence Page 52 – Gilts
Page 90 – Flowchart Page 140 – POCA Offences Page 26 – risk pyramid
Page 108 – A66 120 – non-investment
Page 107 – A67 insurance policy examples
Page 108 – A70
Page 102 – A37 (manage)
Page 103 – A40 (safeguard and
administer)
Page 104 – Advising
109- insurance distribution
activities
Q1 LAW (30 marks)
In carrying out this corporate/probate/property work (include type of work we are doing) for X – I
must be always careful/vigilant to comply with the general prohibition under S19 FSMA (Financial
Services and Markets Act 2000) aims to protect consumers. It says it is unlawful to do investment
activity unless firm is authorised by FCA OR exempt. My firm cannot do this activity unless
excluded or exempt. (1 mark)
*We will get shares, insurance (buys legal expenses insurance), and mortgage work – be aware of
different working teams. Tackle each work separately. One IAES (investment, activities, exclusions,
and scope) for corporate, mortgage and insurance work for example.
ANALYSE INVESTMENTS (WRITE THIS HEADING) – 3 marks
Refer to page 5 to understand the types of investment – regulated or unregulated? There are 4
types of investments.
Non-regulated: Cash, land, Post Office Accounts – no need to apply this law. Not regulated for
purposes of FCA. We can lump these together but not the other parts.
Securities: The shares are regulated securities (A76) – not RIPs (RIPS are strictly regulated)
o Unit Investment Trusts are quite different – one is regulated under A76 and A81
Non- investment Insurance (page 5) – X’s insurance is a relevant investment (A75) and it is
, neither CBI or a RIP. It is regulated with a lighter touch – term life insurance.
Mortgage: Charge of land in UK at least 40% of which is used as a dwelling (page 95 definition)
REGULATED ACTIVITIES (2 marks) + RAO EXCLUSIONS (14 marks)
If the investments are regulated, next we need to decide what activities we are doing in the firm
in a transaction.
REGULATED INVESTMENTS EXCLUSIONS
ACTIVITY If conditions are met, we call activity ‘excluded
activity’
ARRANGING (A25) A66 to A70 are the general exclusions. A66
applies the most because Trustees must be given
For it to be classed Securities (shares, the most latitude as they have a fiduciary duty.
as a regulated gilts, unit trusts A29 (3 marks): Via AP (authorised person)-
activity the units) execution only
investment must *AP = an IFA for pensions and life insurance,
be of a particular Definition: stockbroker for plc shares traded and
and named Arranging to accountant for limited company shares.
nature. If it’s not a buy/sell X’s shares. Introduction: Any arranging I do on the sales
particular Including may be excluded if I/ my firm/ we do it with or
investment and researching how to through for the traded shares a stockbroker,
just cash, then sell shares, drafting and for the RIPs and IFA. It could be an
solicitors should paperwork, opening accountant for limited company shares.
be able to advise a file, filling out
broadly without forms. This does not Options: Either a) on those peoples advise
making any include particular applied to X if X wants it. Or execution-only (if X
specific named shares (e.g., has already made-up mind and does not want
references. ‘Tesco plc shares’) advice from stockbroker/AP). Execution only is
not the best option as to acting in X’s best
Exam wording: Here interests.
The person being I will arrange to sell
advised must be X’s investments Signed Waiver: I would not begin any execution
looking to invest (A25). transaction until I have a disclaimer on my file
PERSONALLY and signed by X.
not on behalf of a
company. Commission: We cannot use this is we fail to
account for commission/ pecuniary award. We
If, at any point, need to account for commission but there won’t
client specifies a be any on these sales. Will commission be made
particular name of on this sale?
a share, please A67 (5 marks): Reasonably necessary (nexus
refer them to a with legal work), no separate remuneration (no
stockbroker. separate bills for legal work and financial
activity)
Solicitor would say
‘this is outside of Introduction: Any arranging or advising I do on
my competence’ these sales may be excluded if it is a necessary
and refer part of the (X) work.
externally.
Nexus: Arranging the sales is necessary to the
X’s work. However, it is not within the scope of
my retainer for me to advise X to sell
investments. It cannot just be standalone
EXAM STRUCTURE
Part A: 10 MCQs (3 marks each)
Part B:
o Q1 Law (30 marks) – start with this
o Q2 MISC (15 marks) – last to write
o Q3 Investment Strategy (25 marks) – second question to write
Bring ID to exam
The exam will be 90 minutes:
o 5 minutes to read all, 10 for MCQs, Q1 30 mins, Q2 10 mins and Q3 20 mins
Results will arrive in 6 to 8 weeks
Online Module to complete within 6 weeks of the course
Q1 Q2 Q3
Page 5 – investments Page 122 – COB rules Page 57 – Funds
Page 7 – Regulated Activity Page 138 – Money Laundering Page 64 – comparison of funds
(securities) Background Page 50 – SPIBS/GIBs/GGBs
Page 8 – Regulated Activity Page 145 – Money Laundering Page 39 – Mortgages
(RMCs and IDAs) Regulations 2017 Page 40 – Life Insurance
Page 9 – Exam methodology Page 146 – Customer Due Page 48 – Pensions
Page 75 – Scope Rules Diligence Page 52 – Gilts
Page 90 – Flowchart Page 140 – POCA Offences Page 26 – risk pyramid
Page 108 – A66 120 – non-investment
Page 107 – A67 insurance policy examples
Page 108 – A70
Page 102 – A37 (manage)
Page 103 – A40 (safeguard and
administer)
Page 104 – Advising
109- insurance distribution
activities
Q1 LAW (30 marks)
In carrying out this corporate/probate/property work (include type of work we are doing) for X – I
must be always careful/vigilant to comply with the general prohibition under S19 FSMA (Financial
Services and Markets Act 2000) aims to protect consumers. It says it is unlawful to do investment
activity unless firm is authorised by FCA OR exempt. My firm cannot do this activity unless
excluded or exempt. (1 mark)
*We will get shares, insurance (buys legal expenses insurance), and mortgage work – be aware of
different working teams. Tackle each work separately. One IAES (investment, activities, exclusions,
and scope) for corporate, mortgage and insurance work for example.
ANALYSE INVESTMENTS (WRITE THIS HEADING) – 3 marks
Refer to page 5 to understand the types of investment – regulated or unregulated? There are 4
types of investments.
Non-regulated: Cash, land, Post Office Accounts – no need to apply this law. Not regulated for
purposes of FCA. We can lump these together but not the other parts.
Securities: The shares are regulated securities (A76) – not RIPs (RIPS are strictly regulated)
o Unit Investment Trusts are quite different – one is regulated under A76 and A81
Non- investment Insurance (page 5) – X’s insurance is a relevant investment (A75) and it is
, neither CBI or a RIP. It is regulated with a lighter touch – term life insurance.
Mortgage: Charge of land in UK at least 40% of which is used as a dwelling (page 95 definition)
REGULATED ACTIVITIES (2 marks) + RAO EXCLUSIONS (14 marks)
If the investments are regulated, next we need to decide what activities we are doing in the firm
in a transaction.
REGULATED INVESTMENTS EXCLUSIONS
ACTIVITY If conditions are met, we call activity ‘excluded
activity’
ARRANGING (A25) A66 to A70 are the general exclusions. A66
applies the most because Trustees must be given
For it to be classed Securities (shares, the most latitude as they have a fiduciary duty.
as a regulated gilts, unit trusts A29 (3 marks): Via AP (authorised person)-
activity the units) execution only
investment must *AP = an IFA for pensions and life insurance,
be of a particular Definition: stockbroker for plc shares traded and
and named Arranging to accountant for limited company shares.
nature. If it’s not a buy/sell X’s shares. Introduction: Any arranging I do on the sales
particular Including may be excluded if I/ my firm/ we do it with or
investment and researching how to through for the traded shares a stockbroker,
just cash, then sell shares, drafting and for the RIPs and IFA. It could be an
solicitors should paperwork, opening accountant for limited company shares.
be able to advise a file, filling out
broadly without forms. This does not Options: Either a) on those peoples advise
making any include particular applied to X if X wants it. Or execution-only (if X
specific named shares (e.g., has already made-up mind and does not want
references. ‘Tesco plc shares’) advice from stockbroker/AP). Execution only is
not the best option as to acting in X’s best
Exam wording: Here interests.
The person being I will arrange to sell
advised must be X’s investments Signed Waiver: I would not begin any execution
looking to invest (A25). transaction until I have a disclaimer on my file
PERSONALLY and signed by X.
not on behalf of a
company. Commission: We cannot use this is we fail to
account for commission/ pecuniary award. We
If, at any point, need to account for commission but there won’t
client specifies a be any on these sales. Will commission be made
particular name of on this sale?
a share, please A67 (5 marks): Reasonably necessary (nexus
refer them to a with legal work), no separate remuneration (no
stockbroker. separate bills for legal work and financial
activity)
Solicitor would say
‘this is outside of Introduction: Any arranging or advising I do on
my competence’ these sales may be excluded if it is a necessary
and refer part of the (X) work.
externally.
Nexus: Arranging the sales is necessary to the
X’s work. However, it is not within the scope of
my retainer for me to advise X to sell
investments. It cannot just be standalone
