FCA Exam Questions And Answers (Updated And Verified)

FCA Exam Questions And Answers (Updated And Verified) 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 - answerB Who regulates UK banks? A Her Majesty's Treasury B The Prudential Regulation Authority C The London Stock Exchange D The European Central Bank - answerB, PRA is part of BOE 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 - answerD, 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 - answerA, PRA takes instructions from FPC, which 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 - answerC, 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 - answerA, 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 - answerD, 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 - answerB, 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 - answerB, 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. - answerB The Financial Conduct Authority is funded by contributions from which of the following? A