CISI – Regulations Final Exam Study Questions with COMPLETE SOLUTIONS (LATEST 2024]

CISI – Regulations Final Exam Study Questions with COMPLETE SOLUTIONS (LATEST 2024] Criminal offence: General defences insider dealing - CORRECT ANSWER No advantage was expected. A belief that the information had been widely disclosed Would have dealt anyway Did not expect the recipient to deal Special defences : insider dealing - CORRECT ANSWER Stabilisation Market information Market makers in the ordinary course of business If a UK company offers an inducement to a foreign agent in order to gain business does the UK company have a defence against an accusation of bribery in contravention of the Bribery Act 2010? - CORRECT ANSWER Yes, if it can show that local law requires the payment of the inducement The Act recognises that overseas laws may be applicable if in that particular country an inducement is required. For which one of the following financial services firms is jurisdiction of the FOS compulsory? The firm is: A. A fund manager selling UCITS compliant funds B. Only offering secondary mortgages C. A pre-paid plastic card company D. An incoming German general insurer - CORRECT ANSWER The fund manager is involved in regulated activities and therefore subject to compulsory jurisdiction. The other three may elect for voluntary jurisdiction. The FCA are currently pursuing a proven accusation of market abuse, what might cause them to discontinue their investigations? A The sum gained was less than £20,000 B The defendant is a market maker C The defendant is a private individual Criminal offence: General defences insider dealing - CORRECT ANSWER No advantage was expected. A belief that the information had been widely disclosed Would have dealt anyway Did not expect the recipient to deal Special defences : insider dealing - CORRECT ANSWER Stabilisation Market information Market makers in the ordinary course of business If a UK company offers an inducement to a foreign agent in order to gain business does the UK company have a defence against an accusation of bribery in contravention of the Bribery Act 2010? - CORRECT ANSWER Yes, if it can show that local law requires the payment of the inducement The Act recognises that overseas laws may be applicable if in that particular country an inducement is required. For which one of the following financial services firms is jurisdiction of the FOS compulsory? The firm is: A. A fund manager selling UCITS compliant funds B. Only offering secondary mortgages C. A pre-paid plastic card company D. An incoming German general insurer - CORRECT ANSWER The fund manager is involved in regulated activities and therefore subject to compulsory jurisdiction. The other three may elect for voluntary jurisdiction. The FCA are currently pursuing a proven accusation of market abuse, what might cause them to discontinue their investigations? A The sum gained was less than £20,000 B The defendant is a market maker C The defendant is a private individual